Volkswagen takeover of Suzuki is unlikely to happen

Volkswagen takeover of Suzuki is unlikely to happenThe Volkswagen-Suzuki relationship may be heading south, but the rumour mill continues to run unabated. Now, a report speculates that VW is mulling a full takeover of Suzuki, even as the Japanese automaker is seeking a complete separation from the partnership.

German mag Der Spiegel reported that a senior manager at VW was quoted as saying that he didn’t rule out a full takeover of Suzuki. Other reports, however, have come out stating that this is highly unlikely to happen, given that Suzuki would have to want to sell, and without the willingness on the part of company chairman and CEO Osamu Suzuki in any bid would ultimately fall through.

Earlier reports said that Suzuki is looking to end its two-year relationship, following a fall-out that began when VW accused Suzuki of violating the agreement of the partnership by looking at Fiat for an engine deal. Suzuki has reportedly offered to buy back VW’s 19.9% stake, but VW has said it is happy with the investment and has no intention of selling.

While VW is unable to raise its stake in the Japanese company without the latter’s consent as long as the alliance is still in place, it can begin to do so if Suzuki cancels the partnership, the report adds. The takeover attempt is probably not going to get very far, given that the Japanese will likely adopt a protectionist attitude towards what would be correctly regarded as a hostile foreign bid.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • It seems, that VW and Suzuki doesn’t match.

    VW should let Suzuki go and let them get happy with their FIAT engines:

    http://www.telegraph.co.uk/motoring/caradvice/honestjohn/6349540/Fiat-500-diesel-disaster.html

    ;)

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  • Plane on Sep 20, 2011 at 2:39 pm

    There is no way VW is going to ditch Suzuki. Suzuki makes good small cars that is better than the Polo.

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    • VW can bankrupt Suzuki if they choose to do it. And guess what, they are gonna do it with the Up…..

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    • OMG Suzuki is better than the Polo?u mean the DSG and TSI cant beat the out of date Suzugirlgirl?

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      • Swift Enam Kelajuan on Sep 21, 2011 at 1:36 am

        betul ckp encik i…sy pun minat mr polo,beetle,golf..
        manakala suzuki tidak banyak model sy minat kecuali swift…
        sx4? hello i msh muda mudi lagi…x syok ler drive sx4…haha

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      • Plane on Sep 21, 2011 at 8:35 am

        Ya, handling wise, the Suzuki is miles ahead of the Polo. Just because more girls use the cars here doesn’t mean it’s is a girly car. Or else you have to accept the Golf GTi to be a girly car too since I see many female drivers using it.

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        • “Ya, handling wise, the Suzuki is miles ahead of the Polo.”

          Give some links or data to it la.. or else i can say Proton Lotus tuned hav better handling than Suzuki (guess wat, big chance they are better).

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          • heeman on Sep 21, 2011 at 12:48 pm

            Let’s take VW Polo n Swift Sport which are almost similarly priced as comparison. I randomly picked a website via Google which turned out to be by The Telegraph. I am sure there are other reputable sites which make the similar findings.

            For Polo, it is stated: “The ride and handling of the new Polo don’t quite match the sharp looks, but then the model has always been about solid family transport, first cars for wealthy teenagers and comfortable urban runarounds than a sporting drive (even for the three-door model, which arrives in December).” http://www.telegraph.co.uk/motoring/carreviews/superminisandcitycars/5539091/Volkswagen-Polo-2009-review.html

            For the older Swift Sport: “Now we get to the handling. Going back to that “rather raw prototype” Swift Sport we drove on a Japanese test track last year, the finished product is completely different. For one thing, the unpredictable lift-off oversteer has gone. I looked hard for such errant behaviour on the road, but the car never put a wheel wrong… Overall verdict? For true driving enthusiasts, it’s well worth a serious look.”
            http://www.telegraph.co.uk/motoring/carreviews/superminisandcitycars/2743249/Swift-little-Suzuki.html

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          • Mr Plane…Golf is so popular,golf nia sell 9 but Suzuki all models only sell 3 maybe 4!good cars always sell more but lousy cars less ( Facebook VW America + VW Canada fans = 1 million + but Suzuki plus plus many groups only 100,000 + lolx GTI girls are hotter than any slow Suzuki swift sport girls even that GTI driver is grandma haha :)

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  • DarkAvenger on Sep 20, 2011 at 3:00 pm

    VW please come back and take over Proton….

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    • MoFaz on Sep 20, 2011 at 3:36 pm

      if proton don’t want, how can VW take over? same case like Suzuki la.. only Proton and Suzuki know why they don’t want VW :)

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      • doctorate on Sep 20, 2011 at 5:53 pm

        vw can hostile take over potong hehe..
        http://en.wikipedia.org/wiki/Takeover#Hostile_takeovers

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