Wednesday, December 9, 2009

Volkswagen Buys 20% of Suzuki, Targets Toyota For Number 1 Spot

Volkswagen, VLKAY (OTC), is buying 20% of Suzuki Motor, creating a dominating global presence particularly in the emerging markets of China and India. Volskwagen is a very a big player in Brazil already.

Suzuki Motor Corporation will sell 107.95M of its own shares it currently holds to Volkswagen AG for JPY2,061 per share. VW will then own a 19.9% stake in Suzuki Motor Corporation.

Suzuki was the automobile leader in Japan for 30 years, until Toyota took over the number one spot. Suzuki is currently the number one in India, where Maruti Suzuki India has 50% of the market (75% of cars are small hatchbacks).

Volkswagen has been doing much better than its competitors, particularly due to is presence in China and Brazil.

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