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Volkswagen’s Indian strategy: Buy 10% of Suzuki

2 July 2009 No Comment

VW Investing in Suzuki for access to India

The Suzuki brand might be insignificant in North America but it’s a run away success with major clout in India. And now, with India’s car industry set to grow faster than any country besides China’s, a German magazine’s reporting that Volkswagen wants to know the ins and outs of Suzuki’s success in India.

The cited report says Volkswagen is looking to take up a 10% stake in Suzuki to collaborate on future models and improve Volkswagen’s sales figures in India. Suzuki in return can benefit from the deal by gaining access to Volkswagen’s many fuel saving technologies. The rumor of such a deal has had a positive reaction from investors with Suzuki’s shares rising 7.7% before eventually settling at 5.5% at $22.88 USD (2,195 Japanese Yen)

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