According to one of the Suzuki executives, quoted by Automobilwoche, the German carmaker is expected to buy a stake in the Japanese manufacturer by year's end.
"We expect that there will be a basic agreement this year," the executive was quoted as saying by the source. "For Suzuki and VW this connection would be a win-win situation. Suzuki would have access to a variety of VW's technology, while Volkswagen would have a solid supporting leg in India and Southeast Asia."
The news was not confirmed by neither Volkswagen, nor Suzuki Europe. Yet, rumors of a possible tie-up between the two, although at times denied by Volkswagen or Suzuki, have been around for quite some time.
The goal of an alliance between the two is to allow the Germans access to the technologies and know-how of small size vehicles. Suzuki is currently building a 660cc vehicle that helped the company become the second manufacturer in the domestic market the past financial year. Analyst believe that such an alliance, however, would benefit both sides.
"Volkswagen could benefit from an alliance by increasing its product lineup in the ultra-small car segment... Suzuki could benefit from VW's know-how regarding diesel engines," Marc-Rene Tonn, MM Warburg analyst said in mid-June, when the rumor first appeared.
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