VW and Suzuki?

Bertel Schmitt
by Bertel Schmitt

While Porsche has problems consummating the Volkswagen takeover, Volkswagen covets a smaller, but possibly juicy target: Suzuki. The German Manager Magazine has it on good authority that VW wants to get cozy with the Japanese maker of small cars. Buying, say, 10 percent of Suzuki would not be out of the question. Ulrich Hackenberg, head of VW’s R&D, had been in Hamamatsu, Japan. He came back impressed. “We are still in the sniff phase,” said a VW exec to Manager Magazine, no serious negotiations are being held—yet. Ferdinand Piech had praised Suzuki in May. Not that VW needs help building small cars. But they could need help where Suzuki is the market leader: In India, next to China the most promising growth market on the planet. Suzuki had a partnership with GM, but last year, all GM shares in Suzuki were turned into cash, so the coast is clear.

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • Dancote Dancote on Jun 25, 2009

    In what alternate universe is Suzuki at the bottom of reliability charts? "FloorIt : June 25th, 2009 at 1:22 pm So the 2 car co’s that are at the bottom of the reliability and trade in value charts may join together"

  • ChuckR ChuckR on Jun 25, 2009

    "We are still in the sniff phase" What inelegant phrasing. Woof, woof. Maybe it sounds better in German.

  • Charly Charly on Jun 25, 2009

    Since when is VW at the bottom* when traded in? * excluding North America

  • HerrKaLeun HerrKaLeun on Jun 25, 2009

    If Suzuki still builts cars like the 95 Swift sold in Germany.... no corrosion protection, terribly faulty and not trade in value at all... then they should merge with Chrysler/Fiat to have a merger of equals (this time for real). no matter how bad VW is, at least they don't corrode, and at least in Europe have a good reputation. Suzuki gave the entire Asian industry a bad reputation. not convinced they improved....

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