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Suzuki not interested in larger Volkswagen holding

Suzuki logoSuzuki CEO Osamu Suzuki reinforced his stand today that he does not want Suzuki to become a Volkswagen brand and prefers to continue as the two companies are right now, which he describes as one between ‘equal partners’.

Volkswagen currently holds 19.9 percent of Suzuki stake and that makes them the company’s largest single shareholder. This new stake purchase is a relatively new thing to happen and we haven’t exactly seen any new fruits of the partnership yet. In fact, Suzuki’s most recent concept car unveiled in India earlier this month still reeked of the company’s past association with Government Motors.

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Suzuki Swift with 1.2-litre engine launched in India

Maruti Suzuki has launched a new Swift variant with a 1.2-litre petrol engine which complies to the stricter Bharat Stage IV standard. BS-IV, which is India’s equivalent to Euro 4, will come into force this April.

The new K-series engine, with a power output of 84 bhp and 113 Nm replaces the old 1.3-litre engine with 87 bhp and 111 Nm. Maruti Suzuki claims better refinement and fuel consumption of 17.9 km/l, 2 km/l better than the old 1.3. As a comparison, the M15A 1.5-litre Swift sold in Malaysia has 101 bhp and 133 Nm.

But many Swift buyers are turning to diesel. Maruti introduced the Swift with Fiat’s 1.3-litre Multijet diesel engine (common rail turbo with 75 bhp and 190 Nm) back in 2007 and it has been selling well ever since. Despite increased competition, Maruti sold 10,900 Swifts in December 2009, the model’s highest monthly sales since its debut back in May 2005.

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Delhi 2010: Maruti Suzuki Concept rIII MPV

This is the Maruti Suzuki Concept rIII, designed in India by a “team of young and enthusiastic engineers”. Built on a theme of “togetherness”, the Concept rIII is for the “big family” with “bigger needs” without the bulky looks of a traditional MPV. The seating configuration is in a 2-2-2 formation.

It’s a good effort that looks neat and modern, but after yesterday’s post on the Opel Meriva, we can’t help but draw similarities between the two. As with the GM product, the Concept rIII features rear-hinged “suicide” doors and a kink in the windowline! This compact MPV sits on a stretched SX4 platform with a monocoque body, so it should offer a more car-like experience compared to body on frame rivals like the Toyota Innova, which Indians are familiar with.

Shinzo Nakanishi, MD & CEO of Maruti Suzuki revealed that the company will introduce CNG (compressed natural gas) technology in the near future, so that could make an appearance in the production rIII. Or perhaps, Volkswagen drivetrains, now that Wolfsburg and Suzuki are walking hand-in-hand. Fiat’s 1.3-litre Multijet diesel should be available, as per Maruti Suzuki’s current cars.

Maruti Suzuki, which holds about 50% market share in India, will be keen to diversify its range as rivals take aim at the small car segment, which is its stronghold. The brand also showed off the Kizashi sedan (which it bills as Super Luxury) at the Delhi show.

More pictures after the jump!
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VW and Suzuki to develop hybrids and EVs in India

Following the purchase of 19.9% of Suzuki, Volkswagen has wasted little time in executing its masterplan. Back then, VW said: “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”. Now, VW and Suzuki have revealed that they will be working together on hybrid and electric car projects in India.

The two companies are looking at establishing an R&D centre in the Subcontinent, and it’s likely to be on current Suzuki premises. VW has an arsenal of efficient drivetrains while Suzuki has plenty of small cars in all shapes and sizes. The latter also has a fuel cell programme going on. Will the Volkswagen Up! Lite Concept soon be reality?

It will be interesting to see the fruits of this marriage take shape, and how affordable they can make it to be. Millions of Indians adopting green cars will not only be good for VW and Suzuki, but the rest of the world, as the booming nation is set to be one of the top emitters of greenhouse gases.

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Suzuki R III MPV Concept for Delhi 2010 debut

Suzuki logoOther than the Suzuki APV and other van-like models, can you think of any other Suzuki people mover than you can buy right now? You got it – Suzuki is not a model that is in many vehicle segments, though with the new Kizashi it has begun to entered new territory.

Word is that coming up next is a new monocoque MPV based on a stretched version of the Suzuki SX4′s platform. This formula has been tried and tested by many manufacturers and has resulted in cars like the Nissan Grand Livina and even our very own “stretched Myvi”, the Perodua Alza.

Apparently the new SX4-based MPV will be displayed at the Auto Expo 2010 exhibition in New Dehli next year and it will be called the Maruti Suzuki R III Concept. Though it carries the word concept in its name, expect it to go into production very soon.

Maruti Suzuki already carries a people mover product in its portfolio called the Eeco, but it is yet another van-like product like the ERV/APV. The Suzuki R III Concept MPV will be a car-like vehicle like the Grand Livina and the Alza.

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Volkswagen ends its shopping spree with Suzuki?

Volkswagen LogoAudi, Lamborghini, Bentley, Bugatti, SEAT, Skoda, Volkswagen, Scania, Porsche, MAN and Suzuki. These are the automotive brands (passenger and commercial) linked to the Volkswagen Group. 12 so happens to be the magic number that Volkswagen board chairman Ferdinand Piech said he would like the group to have in number of brands before they call it a day. None of the brands are standalone motorcycle makers currently.

Since Suzuki isn’t officially majority owned by Volkswagen yet, technically it isn’t a brand yet. But 19.9% is more than 0%. So when the announcement came out, a lot of us assumed that it would be hard for Proton to be linked up with Volkswagen again anytime in the future. And now the latest is that Volkswagen chief executive Martin Winterkorn told a German magazine that he does not see any need for any further Merger & Acquisition activity after taking up a stake in Suzuki.

His exact words – “There are some who knock on our door. Some really want to come under our roof as they see we’re on a good path strategically. But we are satisfied with the current line-up.” As for the 19.9% stake in Suzuki, he says time will tell whether Volkswagen will increase that number.

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2 new Suzuki models coming next year?

Suzuki logoDRB-HICOM is stepping up its automotive business in Malaysia. Despite rumours not more than a month ago alleging that the relationship between DRB-HICOM and Suzuki had gone sour, it looks like things are the exact opposite.

The latest news is that DRB-HICOM’s plant in Pekan will be exporting its first Suzuki Swift in April 2010. The Bernama report did not say which markets the Malaysian-assembled car would be sold in, but logic says that it’s the ASEAN region.

UPDATE: Chips Yap of Motortrader dropped us a tip that our Pekan plant’s sole export market for now is Brunei.

DRB-HICOM group MD Datuk Seri Mohd Khamil Jamil also revealed that its Suzuki Malaysia Automobile unit would be launching two new Suzuki models soon, and one of them will be CKD. Our local Suzuki line-up currently consists of the Swift, Swift Sport, the SX4 Sedan, the SX4 Crossover and the Grand Vitara. I’m not sure what else is available to be launched, perhaps the Kizashi and a new locally-assembled Alto? There is also the Suzuki Splash (a co-developed model with GM and also sold as the Opel Agila), also known as the Suzuki Ritz in India.

Since Suzuki is now (or soon to be) just under 20% owned by Volkswagen, this is as close to Malaysia being a VW regional assembly hub as we’ve been able to get so far. Volkswagen makes good cars and we should enjoy them with CKD price tags!

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Hungry Volkswagen adds Suzuki to its stable!

maruti suzuki a star

The tale of the hungry giant called Volkswagen continues! Days after acquiring majority stake in Porsche, Wolfsburg has announced the purchase of 19.9% of Suzuki for US$2.5 billion. The deal, which is billed as “a comprehensive partnership” will also see the Japanese manufacturer invest up to half of the sum received into buying VW shares. This cross buying arrangement sounds similar to the Renault-Nissan Alliance. Both companies will establish a cooperative relationship while respecting each other’s independence as a stand-alone entity, says VW.

“In terms of product portfolio, global distribution and manufacturing capacities, VW and Suzuki ideally complement each other. The 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. 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,” the press statement reads.

Volkswagen Up! Lite

This partnership has real potential to upgrade the standard of motoring in developing markets. Think about it; Suzuki is a small car expert and VW is among the best in making efficient, frugal and clean drivetrains, and the merger of these qualities could bring about a revolution greater than the Tata Nano.

Conveniently, Suzuki is the market leader in India with its Maruti brand and VW is deep rooted and hugely successful in China, so both sides have something great to offer the other. We reckon that the fruits of this marriage will be really sweet – how about a Maruti up! or a next gen Swift Sport with a 1.4 TSI engine?

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Suzuki offers $100 test drive incentive for Audi and Acura buyers!

suzuki-kizashi

No, this is not a scam. Suzuki has drawn up this US-only scheme for the good looking Kizashi saloon which hits American showrooms this month. Suzuki calls its D-segment challenger ‘sports sedan’ and has targetted not Accord/Mazda 6 buyers, but junior execs from premium brands such as Audi and Acura!

To be eligible for the $100 cheque or debit card, those considering an Audi A4 or Acura TSX (the European market Accord) must first test drive a Kizashi at a Suzuki dealer and complete the registration form. Then, if you still actually buy the Audi A4 2.0T or a four-cylinder Acura TSX within 10 days, the 100 bucks is yours.

“The Kizashi was designed to offer a premium driving experience consistent with the near-luxury sport sedan segment. With styling, performance characteristics, luxury features and a new advanced AWD system on par with the Audi A4 and Acura TSX, we’re providing potential sport sedan buyers another reason to consider the Kizashi-at a substantial savings. We’re definitely putting Kizashi’s premium without the premium moniker to the test,” explains Koichi Suzuki, executive vice president of American Suzuki Automotive Operations.

Novel idea isn’t it? Will something like this work in our part of the world?

For more information about the Kizashi, read up Paul’s earlier post here.

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Suzuki SX4 hatch updated with more power

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The Suzuki SX4 Sport Crossover (that’s the hatchback version, not the sedan) has been updated with new specifications in Malaysia. On the outside, the model adds auto-retractable side mirrors with intergrated signal indicators, new design 16 inch alloys, and a new front grille.

Inside, there is a new meter cluster with an integrated MID, a new design for the automatic climate control panel, armrests for the front seats, illuminated audio controls, and an additional dash center speaker and aux-in socket for the audio system.

The most significant change has been to the engine – output is now 110 horsepower at 5,600rpm and 150Nm of torque at 3,800rpm instead of the previous power figures of 101hp at 5,600rpm and 140Nm at 4,000rpm. This means the engine will now perform much better – it now makes more torque, but at a lower RPM at the same time. The 4-speed automatic remains. Other technical changes include a revised front suspension for better comfort, and the addition of ventilated discs for the rear brakes.

The car goes for RM89,998 in Peninsular Malaysia, OTR with insurance. From what I heard, the CBU Japan odd-looking “tall” sedan version can be had at some Suzuki dealerships for much cheaper under RM80k after a RM12k discount.

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