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The Unthinkable Has Happened - VW + Suzuki (Worldwide) PDF Print
Friday, 11 December 2009 17:38

Okay this is an important piece of news but very strange at that as well. VW goes and buys 20% of Suzuki Motor for $2.5 Billion. I was a little disappointed hearing that because VW makes solid cars which are German and all and nicely engineered which is exactly not what Suzuki is. Suzuki makes small commuter cars which are barely screwed up together in one piece. VW cars are solid with doors as heavy as a few Suzuki cars themselves. Suzuki's are rattle prone from the first day you drive one out of the showroom. The Swift will be ready to set an example for this feat. What VW can not do is make small cars. I am not talking about Fabia or Seat Ibiza. They are still large cars compared to what emerging markets want. Suzuki is the master in small cars. The world is changing. People want small cars and VW needs to change if they want to be competitive (though they are already number 1 in volume this year). Developing economies are demanding small cars and VW has been developing the UP which is still a concept but I am sure now it will be powered by a Suzuki engine when it comes to India in 2012. Also VW launches its major attack on the indian market in January 2010 with the launch of the Polo hatchback which is their most important car so far for India. They are here for a long haul and the Suzuki alliance is aimed squarely at the Indian market. GM take note. Let's see what you do with SAIC alone.

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