Volkswagen Suzuki joint venture in jeopardy
Volkswagen is vocal about its differences with Suzuki on the joint venture they stamped on. Both the auto biggies were willing to find new opportunities for establishing themselves in the domestic small car industry. Volkswagen purchased 20 per cent stake in Suzuki Motors and even after a year the plan has not been formulated.
- Write a comment
Martin Winterkorn, CEO of Volkswagen stated that in the German's yearly accounts conference both the auto companies had difference of opinion over taking decisions.
Mr Winterkorn pointed that Japanese approach towards work is different they take decisions late when compared to the West. The CEO reverted it when inquired about the deal.
Volkswagen Europe's largest car manufacturer which rolled out 7.2 million cars in 2010 revealed that the sales revenue raised to 21 per cent at 127 billion euros. The net profit from 911 million euros in 2009 stood at 7.2 billion euros.
However, Volkswagen elevated its sale in the domestic auto market with Volkswagen, Audi and Skoda. The auto industry was abuzz with the rumours that VW could create a bigger position with help of Suzuki which holds 50 per cent of the Indian auto market.
The companies are making progress as together they wish to generate new opportunities. Specifically for India, the company has targeted the small auto segment. The auto companies can also look forward for generating better engine and different drive technologies. These projects are being talked with Suzuki.
Volkswagen is looking forward at bagging the number one slot in the race of auto companies by 2018 leaving Toyota behind. The company is highly banking on Indian auto markets and Chinese auto markets.
When the deal was stamped it was rumored that Volkswagen will help the Japanese auto giant coming up with new car models while Volkswagen will get the cars engine, technology for small cars. The auto companies were planning to generate joint platforms and common parts to manufacture small cars for the domestic auto market. Volkswagen will not introduce 'Seat' car brand in India probably it may land in China. However, with India the auto company is quite hopeful to double its sales for the year.
Read More on : Volkswagen Vento
