Volkswagen will Create an Alliance with Suzuki

Volkswagen is considering the possibility of establishing a strategic alliance with the Japanese car manufacturer Suzuki in the sphere of developing subcompact cars. This was reported by Bloomberg News, citing unnamed sources familiar with the situation.

As explained by Reuters, in the scope of the partnership Japanese company Suzuki will receive the support of one of the largest automakers to develop new models, while Volkswagen will be able to add to its range a subcompact vehicle.

It is worth to note that the first model of this line should stand on the conveyor factory in Bratislava in 2011. According to some reports, within the alliance company Volkswagen is also considering the option to purchase 10 percent of the shares of Suzuki, but the representatives of the Japanese automakers have refused to comment on this information, as well as give details about the upcoming partnership with the Germans.

It should be noted that eight years ago, about 20 percent of Suzuki Motor shares were owned by General Motors Concern, but in 2006, the U.S. automaker sold 17 percent of the package for two billion dollars to replenish its own budget. In late 2008, the remaining three percent were purchased from GM by Suzuki, which, however, noted that despite this, all the joint projects of two companies remain in force.

According to some experts, due to the bankruptcy of GM and its precarious financial situation, the Japanese company needs a new partner, who may well become a VW. In doing so, according to the source, last month, chairman of the board of directors of Volkswagen Pih Ferdinand has declared the interest of the company in Suzuki group.