Blog: Suzuki and VW
Dave Leggett | 15 January 2013
A look at Suzuki's share price suggests that investors have been taking a highly positive view of prospects for the company in recent months. You may recall that it decided to exit the US market (on cars, not on motorcycles and some other products), where it was losing money, not so long ago. Suzuki then decided to focus on Asia, which makes sense strategically – given the company's product strengths. Industrial relations issues in India also seem to have calmed down.
There is, however, still a knotty problem involving the rather acrimonious break-up with Volkswagen. The erstwhile strategic partners are locked in conflict (lawyers at dawn) because VW is clinging on to a 19.9% stake in Suzuki. Suzuki is trying to force it to give that up (it effectively bars Suzuki from other OEM partnerships). This has been rumbling along since late 2011. I gather a final arbitration is now in prospect.
Interesting to note that VW is now talking about a low-cost brand aimed squarely at emerging markets, especially in Asia. That might have been something that Suzuki could have helped with...
Making cars where you sell them makes sense on a number of grounds. It can be a way to save on shipping costs, exploit lower manufacturing costs, avoid import tariffs and reduce exchange rate risks....
The Paris Show seems a long time ago now, but I have been sent a link to a BBC news item in which just-auto's editor makes a brief appearance....
It was interesting to speak with UK prime minister David Cameron yesterday. I didn't have much time, so I went for the European question....
- COMMENT: US JLR plant likely to get a warm welcome
- THE WEEK THAT WAS: Interesting, interesting...
- VEHICLE ANALYSIS: Mitsubishi's top-selling PHEV
- VEHICLE ANALYSIS: 2014 Peugeot RCZ R
- COMMENT: FKG keeps ears on the track in Gothenburg
- Tatkata airbag recall extended to 7.8m US vehicles
- JLR-Chery JV opens China factory
- Daimler restructures cooperation with Tesla
- UK: Vauxhall goes after Ford with Corsa pricing
- Britain better off inside a reformed EU - UK PM
- Jaguar Land Rover: Providing remarkable growth throughout the economic downturn
- PLDB - vehicle cycle plan database (annual subscription)
- Global light vehicle safety systems market- forecasts to 2029
- LMC Automotive's European Passenger Car Production Estimates (annual subscription)
- Ford Motor Company - Strategy and SWOT Report