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Old 03-16-2011, 01:50 PM   #1
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Default Report: Volkswagen-Suzuki Partnership Off to Less-Than-Stellar Start

Remember when Volkswagen took a 20-percent stake in Suzuki? Don’t worry if it has completely slipped your mind, because according to reports, little has come out of the year-old strategic alliance. The Financial Times reports the German and Japanese automakers have made little progress since joining forces in late 2009, and cultural differences are supposedly primarily to blame. Though Volkswagen is hot on making headway into Asia’s small-car market, Suzuki hasn’t been as open as VW hoped.

“We are still in a period where we have to establish trust,” said Martin Winterkorn, VW CEO. “We here in the western world are sometimes more decisive…the Japanese culture of achieving consensus is difficult.”
With an ambitious growth goal in mind, VW is reportedly very anxious over gaining access to Maruti Suzuki, the Suzuki subsidiary that currently holds over half of the Indian auto market. Though Suzuki has been relatively stagnant in the United States, its small cars are strong sellers in other parts of the globe.

Suzuki planned to use its tie-up with VW to gain ground on diesel engines and hybrid and electric vehicles. An anonymous VW executive says a lack of transparency has led to a slow Suzuki, as the Japanese end hasn’t acquired as much technology as it wanted.

“They can’t seriously expect that we give away all our treasures to a partner that we only minority-own,” said the anonymous executive.
Nevertheless, Winterkorn asserts the two companies will continue to work together and have a variety of plans and ideas in the works. Whether any of those plans and ideas come to fruition will have to be revealed at a later time.


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Old 03-16-2011, 03:45 PM   #2
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.... At this point,
even I have lost track.


My first thought..........with VW and Suzuki, this can only end badly.
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Old 03-16-2011, 04:06 PM   #3
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Old 03-16-2011, 04:50 PM   #4
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Originally Posted by justincredible View Post
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Old 03-16-2011, 04:50 PM   #5
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