Suzuki aims to take stake in Volkswagen soon

Suzuki aims to take stake in Volkswagen soon

Hamamatsu, Japan: Suzuki Motor Corp is keen to take a stake in Volkswagen AG soon, as the European automaker looks for shareholders willing to sell to Suzuki, the head of the Japanese firm said on Friday.

Suzuki and Volkswagen last month announced a comprehensive tie-up, and Europe’s top automaker on Friday became Suzuki’s biggest shareholder with a 19.9% stake. Cross-shareholding between the two companies is part of the pact.

Suzuki also plans to procure diesel engines from Volkswagen, Osamu Suzuki, the chairman and chief executive of Japan’s fourth-largest automaker, said in a group interview.

He also said the two automakers will aggressively look into the possibility of common parts and platforms.

As the global car industry faces fragile demand, chronic overcapacity and stricter environmental regulations, automakers are joining forces to save the billions each would need to develop state-of-the-art powertrains.

Suzuki, who is turning 80 later this month, said he has no intention to quit as president.

Prior to his comments, Suzuki Motor shares closed down 1.4% at ¥2,206, underperforming the Nikkei average, which gained 0.7%.