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Suzuki Motor and Volkswagen have reached an understanding to establish a comprehensive partnership with a framework agreement that has been signed by representatives of both companies.
In terms of global presence and product diversity, the partnership marks an important step towards the future for both companies.
In terms of product portfolio, global distribution and manufacturing capacities, Suzuki and Volkswagen ideally complement each other. They plan a joint approach to the growing demand for more environmentally friendly vehicles.
The managements of Suzuki and Volkswagen have concluded that the complementary strengths of each company make for a perfect fit in exploiting their respective advantages as well as rising to the challenge of the global market.
In the automotive industry, where globalisation and diversification proceed in parallel, both companies will establish a co-operative relationship while respecting each other's independence as a stand-alone entity.
Both parties are focused on achieving synergies in the areas of rapidly growing emerging markets as well as in the development and manufacturing of innovative and environmentally friendly compact cars. To support a smooth development of this relationship, Volkswagen will purchase 19.9 per cent of Suzuki's issued shares.
The closing of the transaction is subject to approval of the relevant authorities and is expected this month. Suzuki intends to invest up to one half of the amount received from Volkswagen into shares of Volkswagen.
Both companies will form a long-term strategic partnership based on this which will support their successful strategies in these challenging times.
Volkswagen CEO Martin Winterkorn said: "Together we can maximise our opportunities for growth. We are proud to be co-operating with such an esteemed partner."
