VW to buy 20% of Suzuki

VW is on a tear and they just made that crushing sound even harder to bear for their competitors! They are buying 20% or a controlling share on Suzuki for $2.5 Billion. Combined the 2 companies will sell close to 9 million vehicles per year and places the new Global Co. atop the sales leaders. (yes ahead of the faltering Toyota as well) Look for good things to come from this automotive hook-up!

From the Detroit News:

Tokyo — Volkswagen AG will buy a 20 percent stake in Suzuki Motor Corp. for 222.5 billion yen ($2.5 billion), forming one of the world’s biggest auto alliances and giving the two carmakers a boost in fast-growing Asian markets.

Suzuki, which makes small cars such as the Swift and the Splash, said Wednesday it will also purchase shares in Volkswagen worth up to half the amount the German maker buys, solidifying the partnership through cross-holding of equity.

The Japanese automaker said the companies plan to complete the deal, which would make Volkswagen its top shareholder, by mid-February.


Photo from fOTOGLIF

  

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