Can sustain in India without Suzuki: Volkswagen
The two year joint venture between the leading auto brands VW and Suzuki is now expected to come to an end, when Suzuki has expressed its intention to break the pac VW's chief executive, Martin Winterkorn was reported saying that Suzuki Motors was their option to strengthen its presence in India, however, they might as well make it happen on their own. Volkswagen had apparently entered into the JV hoping to seek help from the Japanese brand in expanding its operations in India. Suzuki Motors seeks the breakup as VW had accused the auto major of violating the partnership agreement by depending on Fiat for the diesel engine supply.
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The deal was formed between the two automobile manufacturers to mutually benefit from each other, while VW sought its small car entry in India, Suzuki intended to gain access of VW's hybrid and diesel technology. The Suzuki's exit from the JV is now expected to happen after two months of stressed relationship between them. Suzuki Motors had apparently offered to buy out the VW's 19.9 % stakes in company, which the German auto manufacturers has declined outrightly. VW chairman Ferdinand Piech, who had played an instrumental role in initiating the communication between the partners, had informed that the decision lies with the companies involved and not with the management.
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Piech had been the chief reason behind the VW's phenomenal growth in the industry and with his continuous efforts, the company hopes to reach new heights surpassing even the Japanese auto giant Toyota Motors by 2018. The VW and Porsche alliance goes way back and its was Porsche behind the original VW Beetle designing, which we see today plying on the Indian roads. VW has tie-ups with other auto brands like the truckmaker MAN and Sweeden's Scania.
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