Volkswagen Signals Suzuki For Partnership

This is where the East meets West. German car manufacturer Volkswagen is looking for partnership with Suzuki Motors Corporation (SMC). The reason is Volkswagen wants access to Suzuki’s small car technology which is abundantly used in emerging markets like India. Asian cars are in huge demand across the world nowadays. And who better than Japan can deliver small cars. Right?

According to news circulated by Reuters, Volkswagen is considering on securing a deal with Suzuki Motor Corporation and gain access to small car technology used in Suzuki cars. This initiative is in pursuance of Volkswagen’s global plans to beat Toyota and fight to the top Numero Uno position.

Interestingly, Volkswagen already has small cars in its portfolio like Beetle, Rabbit, GTI, Polo and Up. But the German company feels that Suzuki truly knows how to make small cars. They are, inexpensive and less powerful than Volkswagen cars, but are very user friendly. It also has a 660 cc vehicle in Japan. Suzuki is the second largest car manufacturer in Japan, just behind Toyota, the world’s largest car manufacturer. It is also the majority partner in the Maruti Suzuki India. It is the builder of Maruti Suzuki Alto and A-star, which are hugely popular in European markets.

But nobody is sure if the deal will get through this year. In the past too, Volkswagen has sent a similar request to Suzuki, but the deal never materialized. A lot of its future plans are at stake in this latest deal for Volkswagen. Suzuki will need to play its cards carefully before accepting the deal.
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