Wednesday, 9th December 2009
In Business In Japan,
German car maker makes Suzuki offer
German car marque Volkswagen is to buy a stake in the Japanese vehicle firm Suzuki, with the Asian manufacturer acquiring a part of Volkswagen as part of the deal.
Volkswagen is set to pay 222.5 billion yen (£1.5 billion) for the 20 per cent stake and Suzuki has pledged to spend "up to one half" of the money it receives from Volkswagen on buying shares in the firm.
According to car industry analysts, the move could be down to Volkswagen's wish to move into the smaller green car market, as it could be seeking help from Suzuki to do this.
As well as this, the buying of the stake will push Volkswagen towards overtaking the dominance of the worldwide car market currently held by Japanese maker Toyota.
The Toyota hybrid Prius vehicle has remained the top selling car in Japan for the past seven months.
In a statement, Suzuki and Volkswagen said they have "reached a common understanding to establish a close long-term strategic partnership".
Written by Kimberley Homer.