Volkswagen to Buy 20% of Suzuki to Boost India Sales
Dec. 9 (Bloomberg) -- Volkswagen AG, Europe’s largestcarmaker, agreed to buy 20 percent of Suzuki Motor Corp. for222.5 billion yen ($2.5 billion) to boost its presence in India.
The Wolfsburg, Germany-based automaker will pay for thestake in January, Suzuki said in a statement to the Tokyo StockExchange today. The Japanese automaker is the parent of MarutiSuzuki India Ltd., the maker of half of the cars sold in thecountry.
Volkswagen plans to expand in India, the world’s secondmost populous country, as job concerns stunt auto demand in theU.S. and Europe. The company is also the second-biggest overseasautomaker in China, which is set to surpass the U.S. as theworld’s largest auto market this year.
The combination will pose a “serious threat” to theglobal dominance of Toyota Motor Corp., said Koji Endo, managingdirector of Advanced Research Japan in Tokyo.
Passenger-car sales in India rose 61 percent last month,the biggest gain in five years.
To contact the reporter on this story:Makiko Kitamura in Tokyo at mkitamura1@bloomberg.net.
Last Updated: December 9, 2009 02:02 ESTSource: Bloomberg
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