Suzuki is reviewing its diesel engine sourcing from PSA Peugeot Citroen and Renault as it looks to strengthen its ties with Volkswagen, chairman and CEO Osamu Suzuki said on Friday.
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Last month, VW and Suzuki announced a cross-shareholding tie-up and VW is now Suzuki’s biggest shareholder with a 19.9% stake.
Suzuki said he wanted to take a stake in VW as soon as he found shareholders willing to sell.
“Volkswagen’s floating shares are limited. We are having them look for potential sellers,” he said in Japan, adding that he also wanted to buy diesel engines from his new partner and would review current ties with PSA and Renault.
Suzuki, as a minicar and small SUV specialist, also has ties with other Japanese automakers and supplies rebranded versions of its minicars and other models on an OEM basis.
“Suzuki is in a comprehensive alliance with Volkswagen. In every field including hybrid, diesel and electric cars, we will carry out joint development with them, or we will learn from them,” Suzuki said.
The two companies will also look into the possibility of common parts and platforms “aggressively”, he said.
Despite close ties in development and procurement, the two firms plan to keep their sales networks separate, Suzuki added.
“We will not do things like Suzuki utilising Volkswagen’s sales networks in China and South America or Volkswagen using Suzuki’s sales channels in India,” he said.
Maruti-Suzuki tops the Indian market with a 50%+ share and VW is number one in China.
