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Old 07-23-2010, 10:12 AM   #1 (permalink)
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Default Volkswagen to Increase Share of Suzuki by 10%; Takeover in the Works?

Volkswagen is looking to expand its 19.9% stake in Japanese automaker Suzuki by an additional 10 percent reports Automobile Magazine. The reasons for the larger share aren't entirely clear, with possible reasons being increasingly shared products between the two automakers. We've already heard that Volkswagen intends to rebadge Suzuki models as VWs in some emerging markets and there's rumor of an SX4-based VW crossover called the RockTan. Automobile also suggests the SX4 platform being used for future VW brand models and a new Gran Vitara platform that would also be used across several VW brand companies.

A more likely possibility, however, is that VW intends to take control of Suzuki. While the 80-year-old Suzuki boss Osamu Suzuki has refuted those claims, he may actually want to retire at some point or face dying at his desk. Either way VW is almost certain to make a push to take full control of the Japanese automaker.

Along with whatever product reasons there may be for a takeover, TTAC suggests (and we agree) that the bigger reason is likely as an insurance policy against its claim to be the largest automaker in the world by 2018. In other words, even if VW can't make it's lofty goal all on its own, being able to add in Suzuki's share of the market will certainly bump it to the top.

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