JAPAN: Japan's compact car maker Suzuki Motor says detailed talks with Volkswagen begin in January

Record ID: 463495

  • Title: JAPAN: Japan's compact car maker Suzuki Motor says detailed talks with Volkswagen begin in January
  • Date: 17th December 2009
  • Summary: (SOUNDBITE) (Japanese) SUZUKI MOTOR CEO OSAMU SUZUKI SAYING: "We will go into detailed discussions after the 10th of January next year." REPORTERS (SOUNDBITE) (Japanese) SUZUKI MOTOR CEO OSAMU SUZUKI SAYING: "We both share the vision to produce small, high-performance cars, so I think we'll be moving in that direction." VIEW FROM PHOTOGRAPHERS TO CEO SUZUKI AS HE APPROACHES NEW ALTO MODEL ON DISPLAY SUZUKI'S HAND ON DOOR MIRROR "ALTO" LOGO
  • Embargoed: 1st January 2010 12:00
  • Keywords:
  • Location: Japan
  • Country: Japan
  • Topics: Industry
  • Reuters ID: LVAECM1VTS3X7LFKFFVQLRAZDXGS
  • Story Text: Suzuki Motor and Volkswagen will start detailed discussions over joint projects after January 10.
    Japan's compact car maker Suzuki Motor said on Wednesday (December 16) that the company and Germany's Volkswagen will go into detailed discussions over joint projects in January.
    Suzuki's CEO Osamu Suzuki told a news conference on the sidelines of an event to launch its new "Alto" compact cars, that Suzuki and Volkswagen share the vision of making high-performing, compact cars.
    "We will go into detailed discussions after the 10th of January next year," Suzuki told reporters.
    "We both share the vision to produce small, high-performance cars, so I think we'll be moving in that direction," he added.
    Volkswagen and Suzuki announced earlier this month that Volkswagen will buy a one-fifth stake in Suzuki Motor for $2.5 billion, tapping the Japanese firm's expertise in small cars and dominance in India as Volkswagen seeks to become the No.1 automaker.
    With the global car industry facing still fragile demand, chronic overcapacity and stricter environmental regulations, automakers are joining forces to save billions and each would need to develop state-of-the-art powertrains.
    An Indian newspaper reported last week that the two automakers plan to develop a new small car that would cost between $4,300 and $5,400 for the Indian market.
    Last month, Suzuki, Japan's fourth-biggest automaker, quadrupled its annual operating profit forecast as sales soared in its main Indian market, setting it apart from other Japanese automakers that have depended heavily on the sinking U.S. market.
    Even in Japan, Suzuki is benefiting from the popularity of 660cc mini-vehicles -- a segment it dominates with Toyota unit Daihatsu Motor.
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