The Banking and Strategy Initiative

Chillin' out till it needs to be funded

Actually VW will even replace the “mruti”

Volkswagen Produces Golf VI

Following on to yesterday’s announcement, it seems that VW made noise regarding the ‘alliance’ upon its 19.9% stake purchase letting FT on that this would be used to grow in India and Japan

Wednesday’s announcement came in the week that VW bought 49.9 per cent of Porschefor €3.9bn ($5.7bn) and marked another step in the drive by Ferdinand Piëch,chairman, to build a global company. VW and the Japanese company would buy each others’ shares and co-operate “while respecting each other’s independence”, the German carmaker said. via FT.com / Companies / Automobiles – VW secures Asian presence with Suzuki deal.

Suzuki sold a 20% stake to Volkswagen in a deal that will give VW 19.9% in Suzuki by 2010 for $2.5 billion. Both have claimed to remain independent after the deal is completed in January 2010 Volkswagen has global sales of $167 billion and it also suffers with the global auto industry with margins of 1.5% for PAT while Suzuki is a baby in comparison with annual sales of $30 billion. In India however Volkswagen has had a tepid launch but is adding the Beetle CBUs in 2010. (launched at INR20.45 lacs)

Indian car sales grew over 30% m-o-m after a long time selling 160000 cars in November including 55000 by Hyundai, Overall Auto industry sales have also more or less maintained a million vehicles a month in 2010.

Watch our tweets in November Rural distribution will be key as Indian Lifestyle story finally moves to B Towns. Further in India, VW has invested Rs 3800 Cr (etnow.tv ) in India with a plant in Chakan, Emerging markets continue unaffected by such global deals, to the extent that we are direly in need of people who can assimilate the global events and share with correspondents on the reuters feed as in any other nation The combination will pose a “serious threat” to the global dominance of Toyota Motor, said Koji Endo, managing director of Advanced Research Japan in Tokyo – Bloomberg UTVi We highly recommend reading and joining Dances with Shadows for desi car updates like the upcoming hikes in January . A speculation of its 54% stake in the ‘National Pride’ stock of Maruti suzuki at 206 Yen per share is likely, but unseeming as VW may not opt for a joint venture and Suzuki may avert further financial trouble but it cannot be ruled out. VW may like a shared marketing arrangement at a much later stage ( I am wilfully speculating) and has announced hat they would be uniting purchases to cement the alliance. This seems to be in line with VW chariman’s desire or Suzuki’s agreement to reinvest $1.25 billion in these markets The INR3800 Crs in VW at Pakhan, Gujarat may continue to grow for another 4-5 years before further activity on this deal. Earlier confusion dogged Nissan Renault’s entry into India with JV partners switching between Mahindra, Bajaj, both and a standalone venture. Renault is going with the Indian small car design put out by Baj aj to the Jv

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