VW eats up SUZUKI

17:29 January 22, 2010

VW is on the brink of taking over SUZUKI. The rationale is simple: VW urgently needs to bring small cars to market in cost effective way. Demand may be booming, but small cars equate to low prices and tight to margins. So VW has homed in on Suzuki, not only to gain access to its small car expertise and to boost economies of scale on components, but also because Suzuki already has a cost-efficient production base in emerging countries. It’s dominant in India, e.g. where Suzuki’s subsidiary has 55% of market.
Source: www.carmagazine.co.uk

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