Volkswagen, which became an automotive powerhouse on the strength of inexpensive compact cars, reportedly is looking to acquire Suzuki primarily to acquire the Japanese automaker's expertise in developing and manufacturing cheap small cars. ———- Right, the Swift hatchback is one of several popular compacts Suzuki makes. ———- Britain's Car magazine says VW has been negotiating for months to acquire Suzuki and that the company had planned to announce the consummation of the deal at the Tokyo motor show in October, but last-minute contractual negotiations delayed the timeline. That's consistent with a string of reports filed this past year, including Volkswagen Said to Be Mulling a Super-Small-Car Joint Venture With Suzuki (in June). Meanwhile, Britain's Financial Times has reported that Ferdinand Piech, VW's veteran chairman and consummate empire builder, has said he would like to see the German group controlling 12 brands. It currently has 10 (if you include Porsche and Scania) and with truckmaker MAN, which VW is seeking to secure, and Suzuki, Piech would have his equal dozen. For car industry analyst Max Warburton of Bernstein Research, a combination with Suzuki would probably provide VW with even better value than the Porsche deal. In a report published last week (subscription required), Warburton argued that the logic of a deal that would initially see VW acquire a 20 percent stake in Suzuki, with a larger stake later, is “compelling.” The deal with the Japanese company would help resolve VW's Achilles heel. VW has been struggling to manufacture profitable low-cost small vehicles. Suzuki,
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Beetle-Making Volkswagen Might Acquire Suzuki for Its Small Cars by Year’s End
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