Report: Suzuki wondering if Volkswagen partnership worthwhile

2011 Suzuki Kizashi Sport

About a year and a half ago, Volkswagen had decided to purchase about 20% of Suzuki. However, pretty much nothing has been achieved after the partnership settled because it has yet to be settled.

This is because over the course of time that Volkswagen has had their 20% stake in Suzuki, any progression in the partnership was stalled because of differences in corporate culture and the ways as to how the two would work together mutually to be successful.

Suzuki’s interest in Volkswagen is VW’s technology in alternative powertrains and dual-clutch gearboxes where as Volkswagen is interested in Suzuki because of Maruti Suzuki’s prominence in the Indian market.

The Japanese make also has a partnership with Fiat in where the Italian make bought the rights to one or two Suzuki models so that they could be sold as Fiats, and Suzuki sources their diesel powertrains from Fiat.

That said, there can be much potential to be had since all of the companies have the right resources that when pulled together, can achieve some potentially interesting results. You have Suzuki’s specialty in the compact and subcompact genre (it’s a shame we didn’t get the highly acclaimed Swift here), the vast resources and technology of Volkswagen AG, and with Fiat in the mix…well, there can be a myriad of new cars to come from this. What do you egmCarTech’ers think?

– By: Chris Chin

Source: Automotive News