Suzuki calls off 2-yr relationship with Volkswagen
Suzuki Motor Corp on Monday said it wanted to dissolve its alliance with Germany’s Volkswagen AG, putting an end to the two-year-old cooperation.
Just a day after Volkswagen alleged the Japanese company had infringed an agreement by purchasing diesel engines from Fiat for its plant in Hungary, Suzuki demanded Volkswagen offload its 19.89 per cent holding in it. The Japanese car maker will do the same with its 1.5 per cent stake in the German company.
In a sternly worded press statement, the Japanese company said, “Suzuki hereby announces that its board of directors has officially determined on Monday dissolution of the comprehensive partnership and the cross-shareholding relationship with Volkswagen AG. Suzuki thinks that it is crucial to secure independence in its operating policy decisions for maintaining its competitiveness in the domestic car market and other Asian markets, including India.”
| THE OPPORTUNITIES |
| Maruti Suzuki could have utilised the diesel technology available with Volkswagen instead of depending on Fiat |
| Joint development of small cars for emerging markets and India; Volkswagen had limited knowledge of making low-cost, small cars |
| Use of common vendor base to reduce costs |
| Integration of distribution could have been possible, leveraging Maruti’s huge dealer base |
| THE REALITY |
| Maruti extended its tie-up with Fiat for diesel technology and is already looking at sourcing more engines from the Italian giant |
| No joint development project for small cars took off. Instead, Volkswagen entered the mass market with the Polo pitted against a Maruti Suzuki product |
| No discussions took place on joint vendor development |
| Integration was not a possibility as there were many competing cars. The Polo and the Vento competed with Maruti products |
For more visit: Business Standard
Similar Posts:
Latest Query
- by Sam
Market Stats
Search Our Archives
Research Desk
- Stocks Trading above their 50 day moving average - DMA In Stock Research
- Download free Ebooks based on Technical Analysis In Personal Training
- TOP 100 Stocks with the Highest P/E as on July 14th, 2013 In Stock Research
- TOP 100 Stocks with the Lowest P/E as on July 14th, 2013 In Stock Research
- Charting Pathsala - Your guide to Techincals In Technical Analysis
