VW Agrees to Acquire 19.9% of Suzuki to Challenge Leader Toyota

Volkswagen AG, Europe’s largest carmaker, agreed to pay 222.5 billion yen ($2.5 billion) for a 19.9 percent stake in Suzuki Motor Corp. and jointly develop vehicles for emerging markets to challenge global leader Toyota Motor Corp.

VW and Suzuki plan to develop hybrids and electric vehicles under both car brands, Suzuki Chief Executive Officer Osamu Suzuki said today at a joint press conference with VW in Tokyo. Suzuki will buy as much as 50 billion yen in Wolfsburg, Germany- based VW’s ordinary shares, he said. VW will become the top shareholder in Hamamatsu, Japan-based Suzuki.


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truckman - 12/9/2009 11:44:45 AM

+5 Boost

Bad move.

0to60 - 12/9/2009 1:37:19 PM

+3 Boost

Sounds like they are doing a lot in a short period of time.

Anthony - 12/9/2009 3:35:41 PM

+2 Boost

VW is seriously just buying part of a company just to "challenge" Toyota? Challenge Toyota in what?

tango - 12/10/2009 12:33:17 PM

+1 Boost

Is this another "merger of equals" sort of affair? While I have no problem with Suzuki, I think VW needs to stop paying attention to who it is outdoing and more to what it is not doing. And what it is not doing is making sound business decisions. The only thing that Toyota is facing right now is billions of dollars in lawsuits and recalls. An enviable reputation, you think? VW apparently thinks so...