Germany-based automaker Volkswagen AG (VLKAF.PK) is interested in buying a 20% stake in Suzuki Motor Corp. (SZKMF.PK) to gain access to the Japanese manufacturer's small-car technologies, according to media reports Tuesday, citing people familiar with the situation. A deal could be announced as early as this week. The two companies have reportedly been discussing a partnership since June. A 20% stake in Suzuki would be worth almost US$2.8 billion at current prices.
According to a report in the Nikkei business daily, Osamu Suzuki, the CEO of Suzuki Motor Corp. confirmed Wednesday that the company is negotiating an alliance with Volkswagen. Martin Winterkorn, the CEO of Volkswagen, had said earlier that Suzuki would be an interesting partner for his company due to its expertise in small cars.
Suzuki, Japan's fourth-largest automaker, is known for its mini-car models, including the WagonR and Carry vehicles, which are sold mainly in Japan,and for its Swift hatchback and Jimny small sport-utility vehicle. Suzuki dominates sales of the tiny-car segment, seen as a key segment to compete in emerging markets.
Volkswagen, with ten brands, including Audi, Skoda, Seat and Porsche, has said it wanted to become the world's largest automaker by 2018. The company is planning a range of small cars based on its Up! Concept car, and is looking at an alliance to help reduce the project's development costs.
A stake in Suzuki could also give Volkswagen access to the growing Indian car market, which along with China has withstood the global recession. The Japanese automaker's Maruti Suzuki venture makes half the cars in India, Asia's fourth-largest automotive market. Meanwhile, Volkswagen plans to double the number of workers at its new factory in India to 2,500 by the end of next year. The plant started building the Skoda unit's Fabia hatchback in May and will begin making Polo this week. Volkswagen is already the largest overseas car maker in China.
Suzuki has been cutting ties with Detroit-based General Motors Co., which owned a 20% percent stake in the Japanese automaker until 2006. The company has long-standing ties with GM dating back to 1981, but GM sold 17% of its stake in Suzuki 2006 and the remaining 3% stake last November. Suzuki said in early December that it will sell its 50% in a Canadian joint venture, CAMI Automotive Inc., to GM.
On the other hand, Volkswagen formally took a 49.9% stake in luxury sports carmaker Porsche AG for Euro 3.9 billion on Monday, the latest stage in the process agreed in August, under which Porsche will be eventually integrated into Volkswagen.
The media reports about Volkswagen planning to buy a stake in Suzuki come close on the heels of reports earlier in December that French automotive manufacturer PSA Peugeot Citroën (PEUGF.PK, PEU.L) is in talks to acquire as much as a 50% stake in Japan's Mitsubishi Motors Corp. (MMTOF.PK) in a deal valued at about 300 billion yen, or US$3.4 billion. Such a stake would make the French automaker Mitsubishi's top shareholder and effectively hold control. The two companies are said to be in the final stages of negotiations, which Mitsubishi has denied.
SZKMF.PK last traded on December 4 at $26.35 on a volume of 500 shares.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.