Suzuki Motor Corp., Japan's second- largest minicar maker, and Volkswagen AG are planning a comprehensive alliance that will include cooperation on hybrid vehicles and management.
The first car to use parts from both Suzuki and Volkswagen may be introduced this year, Suzuki's Chief Executive Officer Osamu Suzuki told reporters in Hamamatsu, Japan on Friday.
Volkswagen, Europe's largest carmaker, agreed last month to buy a 19.9 percent stake in Suzuki for 222.5 billion yen ($2.5 billion). The two companies plan to develop hybrids and electric vehicles together under both car brands, Suzuki said Dec. 9.
Volkswagen will supply diesel engines to Suzuki at some point in the future, CEO Suzuki said today with giving a specific timeframe.
Suzuki completed the sale of its shares to Volkswagen today, giving the European automaker its 19.9 percent ownership, Suzuki said. Suzuki may buy up to 50 billion yen in shares of Volkswagen, CEO Suzuki said last month. The Japanese carmaker is "looking for shareholders of Volkswagen who would sell the stock to us," Suzuki said today.
Suzuki plans to introduce electric vehicle In Japan in the future, he said.
Maruti Suzuki India Ltd., Suzuki's local unit, aims to increase capacity in the world's second-most-populous nation 50 percent by 2015 to maintain its market share, Chief Executive Officer Shinzo Nakanishi said Jan. 5.
The company has almost half of the market share in the country and aims to boost annual production capacity to 1.5 million vehicles from 1 million now, according to Nakanishi. Maruti aims to export 130,000 to 140,000 vehicles this fiscal year, including supplying 45,000 vehicles to Nissan Motor Co.
