Suzuki sold a 20% of it's $12 billion valued equity at 206 Yen per share in a deal that will give VW 19.9% in Suzuki by 2010 for $2.5 billion or 222 billion yen. Both have claimed to remain independent after the deal is completed in January 2010
Volkswagen has global sales of $167 billion and it also suffers with the global auto industry with margins of 1.5% for PAT while Suzuki is a baby in comparison with annual sales of $30 billion. In India however Volkswagen has had a tepid launch but is coming back with the Beetle in 2010.
Indian car sales grew over 30% m-o-m after a long time selling 160000 cars in November including 55000 by Hyundai, Overall Auto industry sales have also more or less maintained a million vehicles a month in 2010. Watch our tweets in November Rural distribution will be key as Indian Lifestyle story finally moves to B Towns
The combination will pose a "serious threat" to the global dominance of Toyota Motor, said Koji Endo, managing director of Advanced Research Japan in Tokyo
- Bloomberg UTVi
Its 54% stake in the 'National Pride' stock of Maruti suzuki is unaffected at this stage as emerging market growth criteria are diffent and Volkswagen may not want to disturb its new RS 3900 crore investment in India ( plant is in Chakan, etnow.tv)
WE highly recommend reading and joining Dances with Shadows for desi car updates like the upcoming hikes in January . They have the news 6 months in advance and easy to go.
MRTI.BO Maruti on Yahoo, Bloomberg MRTI.NS for NSE)
VOWG.DE Volkswagen on Deutsche Borse Yahoo, Bloomberg
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[category retail-lifestyle, india, retail]
