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Friday, July 15, 2011

By Pranjal Gera

The Volkswagen-Suzuki deal remains unveiled

The news about the Volkswagen-Suzuki alliance spread when Volkswagen bought stakes of 19.9% of Suzuki for a hefty sum of 2.5 billion dollars. The move was appreciated all over the world and the international market hoped to see new products all over the world.

The initial idea was that with Suzuki’s expertise in manufacturing small cars and Volkswagen’s premium diesel engines and latest technologies might be combined to manufacture some of the most enhanced cars but the companies had issues regarding service centers and dealership sharing.

Also, after Volkswagen’s move, Suzuki also bought 2.5 % stakes of Volkswagen at a price of 1.3 billion dollars.

After that a conflict emerged amidst the management of the 2 companies where Volkswagen said that Suzuki is not sharing any of their technology with them and desiring to gain as much modern technology from them as possible.

Also Suzuki was accused of lacking proper co-operation with Volkswagen.

Now, Mr. Osamu Suzuki, Head, Suzuki Motor Corporation wrote in his recent blog that Volkswagen had a wrong impression of Suzuki which they might have developed because of the size difference of the companies. He also said that the technologies of Volkswagen were not very out of the ordinary and cannot be incorporated immediately.

The deal between Volkswagen and Suzuki might soon come to an end and we may see Suzuki joining sides with Fiat. But until the company reveals its plans, it all remains a mere

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