Suzuki, Volkswagen Plan Joint Products

Japanese car major, Suzuki, is planning to develop joint products with Volkswagen of Germany  for the global market, which could create new opportunities for Maruti Suzuki.

Mr Osamu Suzuki, chief of Suzuki said that his company was looking at ways to synergise operations with the German auto behemoth after it bought a 19.9% stake in Suzuki earlier this year.  He said that “the vehicles will be sold in the global market, in case the joint product development happens”.

Suzuki’s statement came months after Christain Kingler, a Volkswagen board member, had told TOI that the European auto major could take the help of Maruti in development of a new car that would be placed below the company’s polo compact.

Suzuki said joint component production would be the starting point pointing of the engagement between the two companies and will help them reduce costs.  And these could be for models that have large volumes.  For Suzuki, it would be wise to develop those models that are sold in India.  VW sells large volumes in China”, he said.  However, the two companies do not have any plans to retail each other’s vehicles through their channels.

Mr Suzuki said that Maruti would set up a new plant at its manesar facility at an investment of close to INR, 1,900 core with a capacity of 250,000 units.  This would be part of the INR 6,215 core investment the company plans to make till 2013, including for a R&D facility at Rohtak and engine capacity expansion.