Suzuki Soapu Opera: Will They or Won't They? Piech Faltering?

Bertel Schmitt
by Bertel Schmitt

Will they or won’t they? That’s currently the talk amongst Germany’s auto execs. “They” are Volkswagen and Suzuki. And “will” refers to taking over Suzuki against its will. Yesterday, Der Spiegel, reported that Volkswagen is no longer barred from taking over Suzuki if Suzuki cancels its contract. Der Spiegel, of course, heard that from an interested party that telegraphs to Hamamatsu. “Be careful what you wish for.” Nonetheless, the rumor mill is at high revs. Let’s investigate.

Reuters called the usual bank analysts a wire service calls when nobody is talking.

“I think it is rather unlikely that Volkswagen will go for a hostile takeover of Suzuki,” said Christian Breitsprecher, and analyst at Macquarie Research. Commerzbank analyst Daniel Schwarz put it more bluntly: “VW simply won’t be able to take over all of Suzuki against his will.” Agreed.

A hostile takeover of a Japanese company is a rare incident. A hostile takeover by foreigners is as likely as me getting Japanese citizenship (theoretically possible, but in practicality …) A hostile takeover of a Japanese car company is as probable as hell being occupied by Antarctica. Suzuki probably has taken a mega dose of poison pills, and if push comes to shove, there will be a horde of white samurai that will protect Suzuki from being abducted by gaijin.

In the unlikely event of a successful takeover, a high-ranking contact at an (unrelated) Japanese carmaker put it even more melodramatically:

How could VW successfully take over Suzuki at this point? The entire company is against VW and has embarked on an unprecedented public takedown campaign against VW. No way this will go forward. The immune system of Suzuki will attack and reject the virus.”

Shingi rarenai! (Incredible.)

Indeed, it is hard to believe that the autocratic management style of Volkswagen would succeed in a passive-aggressive environment called Hamamatsu. In his early days at the helm of Volkswagen, Piech often complained about the “Lehmschicht” , the layer of clay he was unable to dig through at Volkswagen, something that was achieved only decades later, when all the clay was retired. In Hamamatsu, he would face a clay mountain. Just imagine the misunderstandings and things that get lost in translation …

Handy Crib Sheet

“Sumimasen?”

“Excuse me?”

“Mouichido itte kuremasuka.”

“Can you say that again?”

Mou sukoshi yukkuri itte onegaishimasu.”

“Please say that again a little more slowly”

“Kaite kudasai.”

“Write it down please!”

“Wakarimasen.”

“I don’t understand.”

“Ah so.”

“Ach so.”

Meanwhile in Germany, nasty rumors are spreading that Ferdinand Piech, at 74 a teenager compared to the 84 year old Osamu Suzuki, could be faltering. Journalists invited to Volkswagen’s pre-Frankfurt Motor Show press bash, remarked that Piech looked distraught, if not disoriented.

The Financial Times is leading the charge here:

“After a difficult few days for the German carmaking group that saw Mr Piëch’s will thwarted on two fronts – its abortive alliance with Suzuki, and VW’s planned merger with Porsche – he was at an uncharacteristic loss for words. Shielded by his wife Ursula, he deflected most questions with soft, near-monosyllabic responses.”

Piech usually doesn’t say much, but the short remarks coming from his thinning lips usually are high-explosive grenades. He is famous for his soft spoken, but sharp digs. When he is under pressure, he gets even more quiet.

In Volkswagen circles, there sometimes was the remark that the 84 year old Suzuki possibly could require a successor soon, who might be less tough than the Old Man. Let’s hope the nasty journos have it wrong and it’s not Piech who requires a successor.


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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  • Tstag Tstag on Sep 19, 2011

    If VW want this, then they will have it. First they will up their stake, then gradually wait until more and more investors fall by the way side. But do they really want Suzuki and all it's baggage? Why not just buy Mazda or Mitsubishi or both?

    • Unhittable curveball Unhittable curveball on Sep 19, 2011

      I think Mazda will eventually get together with Toyota --Hiroshima's upcoming hybrid vehicles will feature the HSD system from Toyota City; they are also both related to the Sumitomo-Mitsui keiretsu, although Toyota is so big it's like a keiretsu all by itself.

  • Goacom Goacom on Sep 20, 2011

    Suzuki even hung tough when it was dealing with the Government of India which was initially of joint venture between Suzuki and the Government. After a decade or so in the alliance, Suzuki threatened to walk out until it was given majority control over the operations. In the end, the govt. relented.

  • 1995 SC At least you can still get one. There isn't much for Ford folks to be happy about nowadays, but the existence of the Mustang and the fact that the lessons from back in the 90s when Ford tried to kill it and replace it with the then flavor of the day seem to have been learned (the only lessons they seem to remember) are a win not only for Ford folks but for car people in general. One day my Super Coupe will pop its headgaskets (I know it will...I read it on the Internet). I hope I will still be physically up to dropping the supercharged Terminator Cobra motor into it. in all seriousness, The Mustang is a.win for car guys.
  • Lorenzo Heh. The major powers, military or economic, set up these regulators for the smaller countries - the big guys do what they want, and always have. Are the Chinese that unaware?
  • Lorenzo The original 4-Runner, by its very name, promised something different in the future. What happened?
  • Lorenzo At my age, excitement is dangerous. one thing to note: the older models being displayed are more stylish than their current versions, and the old Subaru Forester looks more utilitarian than the current version. I thought the annual model change was dead.
  • Lorenzo Well, it was never an off-roader, much less a military vehicle, so let the people with too much money play make believe.
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