VW and Suzuki tie the knot

[Schneegz]

I'm surprised this hasn't made the news at ST.N yet:

Officially Official: VW and Suzuki tie the knot
by Jonathon Ramsey (RSS feed) on Dec 9th 2009 at 7:32AM



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.

Read the press release at the link.

VW has wanted to get into the motorcycle business for a long time, but I always assumed they wanted a European brand.  Of course, with Suzuki they get a motorcycle company and a car company.  What does this mean for Suzuki motorcycles?

[Baz]

What does this mean for Suzuki motorcycles?

Electrical problems?  

[Mrs. DantesDame]

I'm surprised this hasn't made the news at ST.N yet:

That's because you didn't search

[Schneegz]

That's because you didn't search

Why would this be off topic?  Did Suzuki drop their motorcycle wing?  

[Mrs. DantesDame]

Why would this be off topic?  Did Suzuki drop their motorcycle wing?  

 I didn't put it there. But since it was predominantly about cars (VW and Suzuki) I guess that's where it stayed.

[atypical1]

Why would this be off topic?  

Because it's only about cars. From the official Suzuki press release

As demand continues to rise for smaller cars and for powertrains with higher fuel
efficiency and lower CO2 output, Volkswagen and Suzuki will offer a compelling solution
for customers in emerging markets buying a car for the first time and also for customers
in advanced economies seeking to lower their CO2 footprint while still enjoying the
freedom of transport offered by an exciting range of cars.

I don't see where it says "motorcycle" anywhere.

james

[2RR2NV]

bad timing belts...

[Schneegz]

Because it's only about cars. From the official Suzuki press release



I don't see where it says "motorcycle" anywhere.

james

Do you seriously think a 20% stake in Suzuki has nothing to do with motorcycles?  The article may not mention the word "motorcycle", but Suzuki still builds them, and VW has been trying to get into the motorcycle business for years.  Now they have.

[Mrs. DantesDame]

And now its in the Suzuki forum. Go ahead and start talking about it  

[atypical1]

Do you seriously think a 20% stake in Suzuki has nothing to do with motorcycles?  The article may not mention the word "motorcycle", but Suzuki still builds them, and VW has been trying to get into the motorcycle business for years.  Now they have.

I'm not sure that their shareholders will let them get into the motorcycle business as it's simply too risky. I see them really trying to get into the micro car market in places like India and they might badge some scooters but I'm doubtful that we will ever see a VW motorcycle in the U.S. and if we did it would sell in such small numbers that it wouldn't be worth their time.

We've pretty much seen the end of viable new brands in the market. The makes that we have now are what we are going to have in the near future. I would imagine that the Chinese will have a larger presence once they get their act together though.

james

[DogBoy]

I doubt the motorcycle market makes even a tiny percentage of the money the car market does. Even in emerging markets. The people who have suggested that this is VW buying a chunk of the asian auto market make more sense to me.

[Ralf]

And now its in the Suzuki forum. Go ahead and start talking about it  

Why not in the VW forum?  

[Mrs. DantesDame]

Why not in the VW forum?  

Go ahead - if you can find it  

[Schneegz]

I'm not sure that their shareholders will let them get into the motorcycle business as it's simply too risky. I see them really trying to get into the micro car market in places like India and they might badge some scooters but I'm doubtful that we will ever see a VW motorcycle in the U.S. and if we did it would sell in such small numbers that it wouldn't be worth their time.

We've pretty much seen the end of viable new brands in the market. The makes that we have now are what we are going to have in the near future. I would imagine that the Chinese will have a larger presence once they get their act together though.

james

I'm not saying that VW will make motorcycles.  I'm saying that with a 20% stake, VW will have some influence on Suzuki motorcycles.  For example, VW was the first to introduce dual clutch transmissions to the car market.  Honda recently did the same with the VFR.  Suzuki will now have a leg up on developing their own dual clutch transmission because of VW's expertise on the subject.

[maddjack]

Although everyone is thinking motorcycles,you all forget Suzuki makes cars also ,and I am very sure this is the majority of focus for the two.There have been far stranger bedfellows in the car world.

[Schneegz]

Although everyone is thinking motorcycles,you all forget Suzuki makes cars also ,and I am very sure this is the majority of focus for the two.There have been far stranger bedfellows in the car world.

No one is forgetting that, but since this is a motorcycle forum, and Ferdinand Piech said back in 2008 that he wanted to buy a motorcycle manufacturer, the motorcycle discussion is the most relevant.

[bedlamite]

OK, now I want a turbodiesel Samurai.  

[JReazor]

OK, now I want a turbodiesel Samurai.  

That would be effing awesome!

[Connierider]

I have a Suzuki car SX4 Crossover. I'm a Ford master tech. This little car is awesome(fit, finish, performance). Best bang for the buck as far as I'm concerned. This can only help VW(re:quality), but lets hope they keep thier mitts off of the bikes.

[HipGnosis]

Hmm..   maybe they'll make a TDI diesel adventure bike!
700 - 900cc plz.

[Mac]

Hmm..   maybe they'll make a TDI diesel adventure bike!
700 - 900cc plz.

You read my mind!!

TDI V-strom hmmm...

[Baz]

Damn.........Suzuki was just getting their quality up to par.  

[rauchman]

As the owner of a VW Jetta and a SV1000S, I find this interesting.

[Rincewind]

They are getting a divorce.  It's over.  

“In the absence of VW’s cooperation and given its failure to do what was agreed, there is no basis for the partnership to continue. With the cessation of the partnership there is also no basis for VW to hold on to Suzuki’s shares. We will now work to restore the relationship between Suzuki and VW to its original state as independent parties who do not restrict each other’s business. I call on Dr. Winterkorn to honour this.”

http://www.asphaltandrubber.com/news/suzuki-volkswagen-parternship-over/

[Cablebandit]

Time machine.....

I guess VW will look for someone else in their quest to be the biggest car maker.

[Cablebandit]

They're all about quantity over quality.  Not that they were ever about quality to begin with.