When Volkswagen bought a 19.9 percent share in Suzuki, everybody in the know knew that a much bigger trade was going down. A trade of subcontinents. Suzuki owns nearly half of the market in India, where Volkswagen is a relative nobody. Suzuki is dabbling in China, where Volkswagen rules the roost.
So here comes the first real step: Maruti Suzuki India will help Volkswagen AG develop a new small car priced at less than $8,600, reports Bloomberg. Volkswagen knows how to make small cars alright. What they forgot is how to design cheap small cars.
In return for a refresh or corporate memory, Volkswagen will teach Maruti Suzuki how to build the small peppy diesel engines Volkswagen does so well. If Suzuki won’t learn fast enough, they can directly source engines from Wolfsburg.
Suzuki Chairman Osamu Suzuki will come to India later this month. The two companies will make at least three major announcements about joint product development, contract manufacturing and other collaborations. A small and cheap high volume car would be an immense help for Volkswagen in breaking into emerging markets.
The man on the left really needs a new (better fitting) suit. Are the Germans that cheap?
He is simply making sure that he does not look better dressed than the boss.
don’t blame the tailor. He just swallowed a Tata
And maybe VW’s marketing people can teach Suzuki how to convince more North Americans that the boogey man won’t get them if they buy a Suzuki.