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.

Source

Looking to sell your car? Sell it with Carro.

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Paul Tan

After dabbling for years in the IT industry, Paul Tan initially began this site as a general blog covering various topics of personal interest. With an increasing number of readers paying rapt attention to the motoring stories, one thing led to another and the rest, as they say, is history.

 

Comments

  • statement sound sarcastic…. hehe

    Like or Dislike: Thumb up 0 Thumb down 0
  • pultat on Dec 21, 2009 at 2:19 am

    Siapa makan cili…dia terasa pedas….

    Like or Dislike: Thumb up 0 Thumb down 0
  • Sylvester on Dec 21, 2009 at 2:44 am

    Sorry for Proton, guess the government wouldn't want the national carmaker to be controlled by a foreign company. You need high volumes to sustain the cost of operation, research and development for new products. The national car maker might dominate in its home market but are desperate for export market. I could sense Proton won't last for long and it will either being taken over or closed down. That's the way it is, it happened to many companies. Hope someday VW will takeover Lotus and hopefully gets Proton as complimentary.

    GO SUZUKI!!!

    Like or Dislike: Thumb up 0 Thumb down 0
  • Sylvester,

    I wish I could agree with you, but I think it is a bit too early for such statement. I still have hope for Proton, after all we are Malaysian. One thing I do hope to see is that more Non-Malays could join the team because I have heard that high percentage of people working with Proton are Malays. I hope I will be part of Proton someday. BTW, i love VW cars and other brands under it.=)

    Like or Dislike: Thumb up 0 Thumb down 0
  • bmpower on Dec 21, 2009 at 3:08 am

    what a stupid basher.

    they think, got conquered or owned are a good thing!

    lol!

    Like or Dislike: Thumb up 0 Thumb down 0
  • mirror-mirror on Dec 21, 2009 at 3:45 am

    My friend who has a Master Degree in Mechanical Engineering from Cornell University got rejected by Proton when he applied for a junior position. He was thankful for the rejection.

    Like or Dislike: Thumb up 0 Thumb down 0
  • sudha on Dec 21, 2009 at 4:16 am

    "Audi, Lamborghini, Bentley, Bugatti, SEAT, Skoda, Volkswagen, Scania, Porsche, MAN and Suzuki"

    I count eleven. who is the twelveth?

    Like or Dislike: Thumb up 0 Thumb down 0
  • sam winchester on Dec 21, 2009 at 4:22 am

    vw only interested in lotus… after they buy proton and acquire lotus, proton is no more. why would big car company interested in proton anyway if its not for his benefits. if its win win situation wouldnt u think proton would accept the offer?

    Like or Dislike: Thumb up 0 Thumb down 0
  • Kaiser on Dec 21, 2009 at 5:12 am

    I doubt Proton will ever come under VW control because there is no way the M'sian government will relinquish controlling stake of Proton. However, I can see different types of cooperation, such as tech transfer for Proton's manufacturing capabilities here in the ASEAN region. The market in Europe and US is shrinking so asia is currently the most important prospect for sales growth. They already have a strong foothold in China, already started entering india through Suzuki and ASEAN region would be the next logical step.

    Making a deal with Proton would mean VW cars can be manuractured here and subsequently sold at a lower price range without any big capital investment. However, there are other alternatives besides going through proton for them to achieve this. Let's just wait and see.

    Like or Dislike: Thumb up 0 Thumb down 0
  • joni (Member) on Dec 21, 2009 at 6:01 am

    I wonder what type of car do all the p1 bashers drive.

    Like or Dislike: Thumb up 0 Thumb down 0
  • peYno on Dec 21, 2009 at 6:25 am

    joni said,
    December 20, 2009 @ 10:01 pm

    I wonder what type of car do all the p1 bashers drive.

    ==========
    ppl who just upgrade his waja to Vios , city… and ppl who upgrade his kancil to Myvi..
    driving 2nd class Japs car ASEAN made and tot they drive a JDM car..

    in short word.. they r ah beng japs wannabe whoc can’t afford JDM car… and drive ASEAM made jepun car.. but feel so pround oredi..

    pity them

    Like or Dislike: Thumb up 0 Thumb down 0
  • sudha said,

    December 20, 2009 @ 8:16 pm

    “Audi, Lamborghini, Bentley, Bugatti, SEAT, Skoda, Volkswagen, Scania, Porsche, MAN and Suzuki”

    I count eleven. who is the twelveth?

    Number 12 is the NSU brand. NSU is currently not used, but in the 1950's it was the biggest motorcycle company in the world. They also produced the legendary NSU TTS/E, a GTI of it's time (production stalled in 1972) with 70hp out of 998ccm. Racing versions of the TTS/E had 130hp out of 1.3 liter (in 1970 !).

    There are currently rumors in the german press, that VW might use Suzuki's motorcycle know-how to re-activate NSU as a motorcycle brand. Unlike other japanese companies, Suzuki is known to sell it's motorcycle engines to other companies worldwide, even to competitors…

    Like or Dislike: Thumb up 0 Thumb down 0
  • “Audi, Lamborghini, Bentley, Bugatti, SEAT, Skoda, Volkswagen, Scania, Porsche, MAN and Suzuki”

    I count eleven. who is the twelveth?

    _________________________________________________

    @sudha – The twelveth brand is VW ?!!!???!! VW is a brand, right?

    Like or Dislike: Thumb up 0 Thumb down 0
  • Sylvester on Dec 21, 2009 at 6:51 am

    I think VW wants LOTUS not Proton. Maybe Proton to add VWs volume in the Malaysian market. But LOTUS could do wonders to 12 brands. I bet LOTUS wants VW's fantastic engines and gearboxes!

    Like or Dislike: Thumb up 0 Thumb down 0
  • Oh pls dun sell Proton or Lotus. Imported or Local assembly will not do any good to us. But if Proton is dominated totally by 1 race only… That's totally pointless also. How long you want to keep us away? ..zzZZ

    If some1 can Cook Halal "Bak Kut Teh", and the Muslims eat it. How hard will it be for Proton to Hire a non-Malay. Till today I don't see so call "1 Malaysia", may be it has different meaning than the 1 I'm thinking.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Its not proton…perhaps auto giant which is in financial crisis

    Like or Dislike: Thumb up 0 Thumb down 0
  • old man on Dec 21, 2009 at 7:42 am

    I think Proton looks too high on themselves and believer all outsider will bend down their back to come into local market (but forgotten we are not so big market as compare to other countries and current economy situation), furthermore, we all know the stories of the cronies suppliers.

    OOps, not everyone want to follow their games. DUH!

    This is the result of 20+ years of protection, that the people in charge does not know how to do business in competitive world. End of Story. (And wanted to blame the outsider instead of improve own self somemore)

    Like or Dislike: Thumb up 0 Thumb down 0
  • Littlefire on Dec 21, 2009 at 8:30 am

    Yup, spot on old wise man.. Is all about money.. Why want to loss something which is easy money? If VW came, for sure they will choose the best and dump the "suckers"..

    Like or Dislike: Thumb up 0 Thumb down 0
  • TURBOfans on Dec 21, 2009 at 8:35 am

    proton is birth bcos someone dun have such a big head enuf to wear a big helmet ! tiu~

    Like or Dislike: Thumb up 0 Thumb down 0
  • celicazz on Dec 21, 2009 at 8:36 am

    international automakers wants a quick get out of the bad sales they're into this year due to economic downturn… they could not sell… acquiring suzuki is to save suzuki and vw themselves (volume?)…

    wonders why this announcement that vw will stick to 12 brands under its wing have to do with proton bashing again?

    Like or Dislike: Thumb up 0 Thumb down 0
  • Sylvester on Dec 21, 2009 at 11:39 am

    Proton missed its chance four years ago when VW developed an interest with the 'Jaguh Kampung' carmaker. Unfortunately they do not like things that are run by the German car maker – feeding its fat rats (cronies) anyone? Sorry!

    Like or Dislike: Thumb up 0 Thumb down 0
  • mystvearn on Dec 21, 2009 at 1:40 pm

    VW out of money to go on spending spree so have to settle down abit?

    Like or Dislike: Thumb up 0 Thumb down 0
  • peYno on Dec 21, 2009 at 2:39 pm

    Sylvester

    pls update ur knowledge… JAGUH KAMPUNG title now belongs to PERODUA

    prrrfthhh

    Like or Dislike: Thumb up 0 Thumb down 0
  • 4G63tDSM on Dec 21, 2009 at 5:04 pm

    celicazz said,

    December 21, 2009 @ 12:36 am

    international automakers wants a quick get out of the bad sales they’re into this year due to economic downturn… they could not sell… acquiring suzuki is to save suzuki and vw themselves (volume?)…

    wonders why this announcement that vw will stick to 12 brands under its wing have to do with proton bashing again?

    FYI, no one is bashing the Jaguh kampung. Proton is just a pawn in this.

    It is quite clear that Proton needs a bigger partner with large projected volumes to move on. Proton can't just depend on local consumption alone.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Ronaldo on Dec 21, 2009 at 5:20 pm

    Proton will never wind up or close down as there is One thing call BAIL OUT !! from our bolehland govt…….. It will continue to sux all the tax payer money to feed all the corrupted ppl…….

    Like or Dislike: Thumb up 0 Thumb down 0
  • Tiadaid on Dec 21, 2009 at 5:46 pm

    I am actually glad that Proton & VW didn't manage to get together. Just take a look at Saab, at Volvo, how GM & Ford just dump them like that when times are hard. What Proton needs is a partner that is interested in building up Proton, not to gouge it of its assets like Lotus. That's a gem in Proton's portfolio.

    Like or Dislike: Thumb up 0 Thumb down 0
  • squawk on Dec 22, 2009 at 8:35 pm

    Tiadaid, but look at all the brands bought by VW. They actually improved through better synergy and parts/tech sharing.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Proton should partner the chinese car makers since they almost have the same level of quality and values. VW only want to asembly their cars here not helping proton so what the use partnering them.

    Like or Dislike: Thumb up 0 Thumb down 0
  • c14man on Dec 23, 2009 at 8:21 am

    when Proton started its buusiness 20+ years back, they started with a simple minded objective: To sell cars to MALAYSIANS. Simple.

    When Toyota started building cars, they started with the objective: To sell cars to the WORLD.

    I'm not sure who came out with the brilliant idea "let's jack up the price of imported cars so that Proton can sell well". His idea has caused much suffering to many Malaysians who supposingly could afford a car, but have to end up riding a bike. Thanks!

    Like or Dislike: Thumb up 0 Thumb down 0
  • one (Member) on Dec 24, 2009 at 6:52 am

    To bkk & tiadaid,

    From us Malaysian point of view that might be correct, but then look at the Chinese point of view. The last time I went (that was before Olympics), after Chinese cars, VW are the next most common brand (and Mazda… lots of these cars and imagine with population of 2 billion ppl) Proton was really in their infanthood there (was introducing Gen2 but under Chinese brand I forgot its name). Now if I'm a Chinese carmaker, WHY would I partner a newbie – in terms of technology transfer & marketing value?

    From VW point of view, to be competitive in terms of pricing, they need to have an assembly line here is SEA, which is why they opened talk with P1 in the first place. But now, with lower taxes in Thai and Philippines why would they consider here? In the end profit is everything.

    Go and test drive a skoda or an audi, for me I feel the 'similarities' in driving these cars because they use the same tech as VW (of course they differs in class). The driving comfort, low cabin noise etc. Mind you that when VW took over Skoda, the Skodas were at the brink of extinction and now look at their brand now. VW not only tech transferred, but open up whole new market for brands under its flagship, in which THAT should be P1's target – worldwide market.

    I strongly feel P1 should've partnered VW….. Well that's just my point of view.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Think P1 is fully aware that it needs to go outside of msia, else it can only re-badge to be profitable – like what P2 is doing.

    Btw, Lotus is not an attractive asset to VW really.

    VW would have liked to have a local partner when they go into this region, provided with the right terms ONLY.

    But now, it looks like we haven't hammered out a deal here as we are not willing to be one of VW brands.

    VW can come in alone, but it would be difficult as VW's success in Europe and China does not guarantee them the same level of success here.

    Just look at VW's sales in Thai Auto Expo.

    Like or Dislike: Thumb up 0 Thumb down 0
 

Add a comment

required

required