Advertising Console

    Suzuki CEO Doesn't Want Volkswagen to Increase Stake in Comp


    by NTDTelevision

    Many in the auto industry expect Volkswagen, Europe's top automaker, to eventually want a controlling stake in Suzuki.

    [Osamu Suzuki, CEO, Suzuki Motor Corp]:
    "When Suzuki becomes a bigger and more successful company, Volkswagen will probably want to buy more of our shares."

    Though Suzuki expects major benefits from ties with Volkswagen, Suzuki’s CEO does not see its stake becoming any larger.

    [Osamu Suzuki, CEO, Suzuki Motor Corp]:
    "If that happens, Suzuki will probably respond by saying, 'Let's continue as we are.’"

    Suzuki has said he does not want the company founded by his wife's grandfather to become another Volkswagen brand.

    Volkswagen has bought a one-fifth stake in Suzuki for 2.5 billion U.S. dollars.

    This gives it access to the Japanese firm's expertise in small cars and dominance in the India market.

    VW is the No.1 carmaker in China, while Maruti Suzuki India commands over half of that country's growing market.

    The firms plan to keep sales separate, but Suzuki says his company can help VW with its Asian business outside of China.

    [Osamu Suzuki, CEO, Suzuki Motor Corp]:
    "There are things we have to learn, and I also think there are things that Volkswagen could learn about Asia."

    Suzuki says joint development and mass production may be part of the alliance, while VW has hopes to overtake Toyota as the world's largest carmaker by 2018.