Suzuki aims to take stake in Volkswagen

[rickaren]

Suzuki aims to take stake in Volkswagen soon

Posted on Friday, January 15th, 2010 at 12:20 PM EST.(Employee News)

Suzuki Motor Corp. is keen to take a stake in Volkswagen AG soon, as the European automaker looks for shareholders willing to sell to Suzuki, the head of the Japanese firm said Friday, Reuters reported.

Suzuki and Volkswagen last month announced a comprehensive tie-up, and Europe’s top automaker on Friday became Suzuki’s biggest shareholder with a 19.9 percent stake, Reuters said. Cross-shareholding between the two companies is part of the pact, the news service said. “Volkswagen’s floating shares are limited. We are having them look for potential sellers,” Osamu Suzuki, the chairman and chief executive of Japan’s fourth-largest automaker, said, according to the Reuters report.

He said Suzuki plans to procure diesel engines from Volkswagen, and the maker of Swift and Alto hatchback cars will review its ties with PSA Peugeot Citroen and Renault SA, which currently supply diesel engines to Suzuki, the report said. “Suzuki is in a comprehensive alliance with Volkswagen. In every field including hybrid, diesel and electric cars, we will carry out joint development with them, or we will learn from them,” Suzuki said in the story. (Reuters)