Volkswagen buys 19.9% of Suzuki

By Auto News Log • December 12th, 2009

Volkswagen is definitely taking its newly-earned honor of world’s biggest automaker and is making purchases left and right. Besides taking one step closer to merging with fellow German carmaker Porsche, by buying 49.9% of its stocks, the company has just unveiled that it has bought 19.9% of Suzuki stocks, in a move which will start a new partnership between the two companies.

Half of the money received by Suzuki (which, for the record, denied that any partnership will ever take place) from this transaction will be used to buy Volkswagen stocks, but according to rumors, VW might increase its share to 33% in the future, if things will become profitable.

This is likely a win-win situation, as not only does Suzuki gain an important partner with plenty of important technologies, but VW gains an even bigger influence in Asia through Suzuki and also benefits from the small car technology the Japanese company possesses.

Source: Volkswagen

 

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