Officially Official: VW and Suzuki tie the knot
 

Filed under: Suzuki, Volkswagen, Earnings/Financials
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As you can see from the image above depicting Osamu Suzuki, chairman and CEO of Suzuki Motor Corp. and Martin Winterkorn, his counterpart at Volkswagen AG, the two auto companies have agreed to link arms. Volkswagen has properly announced that it has "reached a common understanding to establish a close longterm strategic partnership" with Suzuki Motor Corporation. The union means VW will buy 19.9% of Suzuki, then Suzuki will spend half the money they just received from Volkswagen reciprocating by buying VW shares.

Beyond that, Suzuki gains access to VW technology and the comforting warmth of a hugely profitable big brother. Volkswagen gets a nearly turn-key solution to boosting its small car development and piggybacks on Suzuki's presence in India and Southeast Asia. Suzuki, and of course, VW, will remain independent, but unofficial word suggests that VW might increase its stake to 33% or more at some point down the road, which could shift the balance of power.

VW's press release is after the jump, and there will be a press conference and webcast (you'll need a user name and password to watch) at 5 p.m. with more details.

[Source: Volkswagen | Image: Kazuhiro Nogi/AFP/Getty]Continue reading Officially Official: VW and Suzuki tie the knot
Officially Official: VW and Suzuki tie the knot originally appeared on Autoblog on Wed, 09 Dec 2009 07:32:00 EST. Please see our terms for use of feeds.


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