VW and Suzuki Might Rebond Their Alliance image

According to an anonymous source VW and Suzuki have found a solution on how to solve a dispute about a deal.

“There have been talks at board level, ” said the source.

VW and Suzuki tried two years ago to form a partnership, but the plan was dropped due to several disagreements. Now both automakers see potential from a possible cooperation, but the two parties still have to fully resolve the disagreements.

In January 2009 VW acquired 20% of Suzuki for 1.7 billion euro, a deal which was aimed at offering the German automaker a strong foothold in the increasing Indian market and also offer Suzuki access to fuel-saving technologies. The alliance between the two was completely broken in September 2011, when VW decided to take diesel engines from Fiat.

On another matter, Suzuki will invest $611.4 million to build a new facility in Indonesia, part of its strategy to expand in this region. Suzuki, which is the fourth biggest automaker by sales in Japan, wants to build small vehicles in Indonesia, which are to be based on the fuel-efficient 660 cc mini car “Wagon R”, which is currently sold in Japan.

Source: Reuters