Suzuki And Volkswagen Are Having A Baby: A-Star Is Born
Ever since Volkswagen bought not quite 20 percent of Suzuki a little more than a year ago, industry observers said: “Now what?” To this day, the couple remains childless. Lately, there have been rumors that the impatient German side is pushing for offsprings, whereas the Japanese side stays chaste. Now finally, there might be results – if India’s Economic Times has the correct information.
India’s business daily says that “Maruti Suzuki will supply its latest compact car A-Star to Volkswagen AG . The car, which will undergo some modifications and design changes, will be sold in India and Asian markets under a new brand, according to senior officials in the automobile industry.”
Nothing is signed yet, but the Economic Times says that the agreement should be inked soon.
Maruti Suzuki sold the A-Star to Nissan, which re-badged the car as a Pixo for sales in Europe. That relationship became rocky shortly after the Suzuki-Volkswagen tie-up.
A little later, Suzuki said that all is hunky dory between Maruti Suzuki and Nissan. “Germany (Volkswagen) and Japan Suzuki are in talks,” Osamu Suzuki said last November. “Maruti Suzuki India has nothing to do with it.”
Now they do. According to the Economic Times, Maruti’s engineering team would work closely with VW to tweak the car to fit Volkswagen’s needs.
“There could be some changes in the basic design though the overall technical specs won’t be altered,” said the Economic Time’s informant.
Volkswagen needs a low cost small car for the developing markets. Wolfsburg engineers lost touch with the company’s entry-level roots. Their Lupo had been discontinued in 2005 and replaced with the Made in Brazil Fox. It’s not a big seller in Europe and it drinks too much. Having an entry level car is the key to long term success in developing markets. You won’t make a lot of money with that car, but you can forge lifetime relationships with customers who never had a car before.
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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so the Susu pet will have a car now, not only Barbie has one. Shall bestow it as Suzu-wagen. Sometimes u wonder if buying each other's shares will it become too many cooks spoil the broth.
one of my classmates has a Pixo. She wanted a new and cheap Nissan. She ignored me when I warned her that it was a re-badged Suzuki from India, saying that Nissan would never do such a thing! slow, poor handling, small backseat, rear windows barely open (they pop out a bit to let in fresh air....that's all).....pluses are that its easy to park and has a decent sound system. and it was cheap, costing her just under 8000 euros.