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Volkswagen Buys Large Stake in Suzuki

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VW buys stake in SuzukiVolkswagen is purchasing a 19.9% ownership stake in Suzuki giving it an expanded presence in vehicle markets in both China and India while Suzuki gains access to markets in Europe. Volkswagen will now have access to Suzuki's small car technology while Suzuki gains from Volkswagen's engineering used in hybrids and electrics.

The 2 companies together are almost as large as Toyota, currently the world's number 1 automaker. If Toyota slips, the Volkswagen-Suzuki combination may be able to pass them and take over that spot.

Suzuki is currently the number 3 motorcycle manufacturer by volume, selling 3.28 million motorcycles in the fiscal year ending March 2009. There has been no specific mention of the effect this combination will have on the motorcycle portion of Suzuki's business, but it should be positive due to the strength of the new organization.

Of course, VW does have some interesting engines, like a certain 3 cylinder turbo diesel from a VW Lupo used in the Thunder Star 1200.

Link: Wall Street Journal subscription required
Link: Automotive News

Posted on Filed Under: Motorcycle Business

Comments

  1. I take it the size of toyota isn’t including the 16.5% share of FHI (Subaru) that they seem to be taking advantage of, or at least will be in the coming 2 or 3 model years.

    Speaking of, whatever happened to that Subaru motorcycle there was hype about?

  2. Interesting. I know there was once a VW motorcycle concept… wonder what a modern VW bike might look like, or cost.

  4. I believe VW is coveting BMWs market segment, they have been trying to go upscale for some time now. VW has the size with all its recent buy ups, but not yet the respect of the Beemers. Maybe VW will take Suzuki Bikes Upscale in the Cruiser Market so as to compete with BMW, Suzuki is an also ran in the Cruiser market, This may be a future opertunity to create a new Identity for Touring Suzukis badged as BMWs, With premium products and premium prices so as to make a profit in the Big Bike market. (pure speculation)

  5. This is another sign of the times we are in. I’m sure we will see more of this as the
    New Year unfolds. In Canada, Yamaha has pulled out of the National Road Race
    Series as has Suzuki. An informed source told me that Yamaha will import
    37% fewer M/C’s into Canada for 2010 ! ! I would not be surprised to see some of
    the smaller M/C brands go by the wayside as well. The closure of Buell may only
    be the first shot fired in the culling of the herd, so to speak. Don’t be surprised if
    some of the big aftermarket distributors start to consolodate their operations.
    What we are seeing in my view is just the tip of the iceberg.

  6. Tin Man, I don’t know about the US but here in Ireland its seems every second cruiser I see is a small bore Suzuki or Yamaha. They seem to have the market cornered when it comes to learner cruisers.

  7. Yeah, I doubt VW would want to have Suzuki cruisers badged as BMWs either. From what I’ve found, Suzuki is quite content with their motorcycle division. This is primarily about the cars; they need help. VW is already on top of the small car platform. They own SEAT and Skoda and produce their own line of compacts. VW has failed in their attempts at going up-market in the past, I think this confirms their grip on the small car segment. Now only Fiat is in the way. For luxury VW has Audi, Bently, Lamborghini, Bently, Bugatti, and Porsche. They also own a number of commercial truck companies. VW is THE LARGEST automotive group in the world when considering total vehicle volume.

    Suzuki’s motorcycle division would not ever be a blip on VWs radar. Likely, VWs interest in Suzuki lies in its substantial automobile market share in India. I doubt VW will ever touch any of the motorcycles.

    -todd

  9. I am not certain about this, but I believe the VW bike were specials constructed by indivduals. The only company I know was Webley-Vickers. They built some wild ones.

  10. Sorry for my mistake in my earlier speculation on VWs buy up of Suzuki. I meant to type, Suzukis badged as VWs, not BMWs. What I was thinking about was VW developing an Upscale Tour/Cruiser based on a Suzuki drive train to compete against the big BMWs.

  11. 3.28 Million motorcycles in one year seems like a really high number to me. Are you sure that’s right?

  13. a lot of trikes in australia use the air cooled beetle engine of yesteryear (it’s unbreakable), so in a way, there’s already kind of “bikes” kind of VW out there as Jacquie said. VW make the only car i’d consider buying, the GOLF GTI (or R32 or upcoming R20), if they were to make a bike, I wish them all the best cos if they made it like they make said car, i’m sure it would be a success.
    In this day and age, european designed and german built seem to carry a lot of weight.
    I also believe the VW boss (or could the old boss, can’t remember) is an avid motorcyclist and wanted to buy Ducati a while back.
    Suzuki is a good move if they’re looking at bikes. Also the Gixxer thou is in serious need of an overhaul with the new S1000, R1 and Fireblade absolutely kicking it in every single mag review.
    Sadly I think it is indeed about the small cars.
    One can dream though.

  14. 3.28 million motorcycles a year seems like a really low number. By “the number three motorcycle manufacturer by volume” I assume it is meant behind Honda and Yamaha – but Bajaj of India builds around that many each year and Hero builds far more, plus companies like Zongshen and Lifan of China have annual manufacturing volumes in that neighborhood, give or take. My guess is either Suzuki builds more or they aren’t really the world’s #3 manufacturer.

  15. when kawaski became partners with suzuki it allowed Arctic cat to get the kawaski 650 V2 does this mean Arctic cat will be able to put the vr6 in the thundercat? :^)
    I hope it means the thunderstar will become an affordible american reality although I have never liked suzuki I’d have to look at it.

  17. Well, not sure it will have any impact at all on the motorcycle side of the business @ Suzuki, there is probably no bridge between them (except finance), and VW is probably only interested in the automotive part of Suzuki.

    The other thing is that these kind of business moves come and go, like Ford buys Jaguar, Ford sells Jaguar, Porsche tries to buy VW, VW tries to buy Porsche, Renault buys Nissan, Nissan buys Renault or sthg … I mean, this is all and only about finance and the game of high-end execs who love to play “integrate” then a few years later “focus on the core business”, or “synergize” then “joint venture” then “put the key under the mat” … VW will sell Suzuki in a few years at best, and there won’t probably be any impact on the bikes business.

  20. VW should stick to cars and vans ,thier core business .Whenever these corporate mergers take place it usualy ends up as one giant cock up. GM tried to have a finger in every pie in the world, and look what the outcome was. There are hundres of mergers where good companies end up as total basket cases. Harley-MV, BMW- Landrover, Ford- Landrover,Jag,Aston etc. Suzuki is doing fine, if it ain’t broke don’t fix it. I hope they don’t start rebadging Suzuki’s as VW.

  21. NO!!!!!!!!!!!!! I don’t want VW’s shoddy reliability affiliating with one of the best manufactures in the world! Sad day in deed.