Blog: Dave LeggettSuzuki 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...

DETROIT: VW eyes new budget brand


BLOG

Opel CEO shares 'metrics for success'

Earlier this year, Opel said that CEO Karl-Thomas Neumann would expand his social communication activities to LinkedIn as a member of the "influencer" programme limited to 500 participants worldwide...

BLOG

Q1 financials generally good, but will the going get tougher?

We’re well into Q1 results season and there are one or two interesting straws in the wind....

BLOG

How Fisher Body did it back in the day

OK, I know I should get out more, but, as well as being a big fan of current auto manufacturing (BMW is always good for an annual show 'n' tell), ...

just-auto homepage



Forgot your password?