Hope I'm not mistaken, but from Reuters VW took 19.9% of Suzuki and plan to go up to 30% to take control.

So new Diesel engine for the GV ? New Hybrid version ?

New GV model should come in 2012.

I would love to see a VW engine under the hood of my GV!

BBC also states this:

http://news.bbc.co.uk/2/hi/business/8402984.stm

The New York Times

December 10, 2009

Volkswagen to Buy 20 Percent Stake in Suzuki
By HIROKO TABUCHI and BETTINA WASSENER

Volkswagen announced Wednesday that it would buy a 20 percent stake in Suzuki Motor of Japan for $2.5 billion, another step in the German auto giant’s aggressive bid to become the world’s biggest automaker.

The alliance would create a formidable new force in the global car industry by allowing Volkswagen, Europe’s biggest carmaker, to tap Suzuki’s strengths in small cars and its dominance in a fast-growing Indian market.

The partnership would also allow the automakers to pool management resources, share parts to cut down production costs and join forces in developing the next generation of fuel-efficient cars, the heads of the two companies said in Tokyo.

“Together, we can maximize our opportunities for growth. In partnership with Suzuki, the Volkswagen group can take a big step forward in the compact car segment, particularly in the emerging markets in Asia,” Volkswagen’s chief executive, Martin Winterkorn, told reporters in Tokyo. “In turn, Suzuki can benefit from our experience with efficient and environmentally friendly vehicles.

“In 8 to 10 years from now, we want to become No. 1 in the world. I believe we will be able to accelerate that with the cooperation with Suzuki.”

In the deal, which is subject to regulatory approval and is expected to close in January, Volkswagen will purchase 19.9 percent of Suzuki’s issued shares for ¥222.5 billion, or $2.5 billion. Suzuki will invest up to half of that amount received from Volkswagen into shares of Volkswagen.

Suzuki’s shares rose 3.5 percent in Tokyo on Wednesday on reports of the tie-up. Volkswagen rose 2.3 percent in Germany.

The Volkswagen-Suzuki partnership is the latest in a flurry of realignments and alliances in the auto industry, which has been battered by falling demand in the United States and Europe and is facing stricter environmental standards in many markets.

Many manufacturers are eager to raise their profile in Asia’s fastest-growing countries — notably China and India — in a bid to tap soaring demand there.

Earlier this month, France’s PSA Peugeot Citroen and Japan's Mitsubishi Motors said they were exploring deeper ties, which had so far been limited to a project-based partnership.

General Motors and China’s Shanghai Automotive Industry Corporation said last week that they will make small cars and vehicles in India, building on a successful 12-year Chinese partnership. Another longstanding alliance between Renault of France and Nissan Motor of Japan has led to some success in developing low-emissions vehicles.

But it has been Volkswagen that has weathered the global recession better than many of its counterparts, thanks to its big exposure to dynamic emerging markets like China and Brazil; the company is now taking bold steps to buttress its world standing.

The German automaker — with 10 brands under its wing including Audi, Skoda, Seat and now Porsche — sold 3.265 million vehicles in the first half of 2009, just behind Toyota’s sales of 3.564 million. Suzuki sold about 1.15 million vehicles in the same period. The proposed Volkswagen-Suzuki combination would have global sales numbers easily above Toyota’s.

In October, Volkswagen announced that it would acquire a 49.9 percent stake in Porsche for about €3.9 billion, or almost $6 billion, the first step in combining the two into an integrated car company.

Analysts said that through Suzuki, Volkswagen can increase its presence in the growth markets of India and southeast Asia, as well as expand its production line in compact cars.

Suzuki is a world leader in the mini-car segment with a particular strength in India. Its Indian subsidiary, Maruti Suzuki, has about a 50 percent share of that fast-growing market, and boasts a network of dealerships across the subcontinent that surpasses that of the dominant local automaker, Tata Motors.

“Volkswagen has struggled to gain market share in India,” said Daniel Schwarz, an analyst at Commerzbank “because they don’t have a small enough car to offer.”

Volkswagen’s only mini-automobile, the Up, is still in development, and the cars they produce in India are larger than those sold by Suzuki, he said.

What Volkswagen gains in geography, Suzuki will gain in technology, Mr. Schwartz said. Despite its strength in small cars, Suzuki has lagged behind in gas-electric hybrids, electric vehicles and other fuel-efficient cars.

Suzuki’s chief executive, Osamu Suzuki, has also spoken of the need for better economies of scale to keep up with cut-throat competition. He said Volkswagen had approached Suzuki about a partnership earlier this year, and negotiations had accelerated after Mr. Winterkorn visited Japan in mid-November.

“The auto industry is characterized by mass production and mass sales,” Mr. Suzuki said.

“That makes the best sense in terms of cost. Having common parts and components is one of the most important things.”

“Suzuki wants access to scale effects,” said Mr. Schwarz. “They’re trying to cope with rising technology costs, which change the game.”

The 80-year-old Mr. Suzuki, however, bristled at suggestions that his company would soon become a Volkswagen subsidiary.

“We aren’t becoming the 12th brand for Volkswagen. We are equal partners,” Mr. Suzuki said. “I’m sure I’ll still be around in 20 years, though I’m not sure about 30 years.”

Bettina Wassener reported from Hong Kong and Chris V. Nicholson contributed reporting from Paris.

I wasn't that thrilled when I heard this bit of news earlier today. I really really hope Suzukis won't once again get re-badged like GM did. And I would be even more disappointed if Suzuki one day becomes part of VW's car monopoly. This whole partnership sounds more like VW continuing its quest to become king of the auto world. I don't quite see how Suzuki truly gains from having VW share some if it's tech with them. They already are working on hybrids, and I'm sure they can figure out how to produce an EV too.

I guess it's better then GM, right? Maybe they build XL7 based on Touareg. :)

If VW can bring in better technologies into engines, transmissions & safety systems then I'm all for it! I feel sorry for our North American cousins not getting the proper Swift earlier. I wonder if the Swift could get a VW Golf GTi engine?

Recently I added a tow bar to my GV as a list of upgrades that I've wanted to make since purchasing it. I was given a Suzuki Alto as a run around while my GV was getting ready. Although it's cheap & made in India, I was surprised how it acted like a go-kart on steroids. I'll write up something on the Alto shortly when I get some free time. Work with the Railways has kept me busy recently.

I hope VW's input into Suzuki can provide the marque with good solid German engineering. I guess we'll have to wait until the next model GV until we can see results of this partnership. Who knows maybe VW may market their own re-badged GV.

I can just imagine Taras getting excited over a new XL-7 based on the Touareg lol.

Quote:

Many people don't like Touareg and Cayenne, but I'm not one of them. Good 4x4 and powerful V8. What else do you need?! Better yet Touareg V10 diesel!

The only concern is that VWs have some reliability issues. And they are overpriced too!

MMmmm a Suzuki Grand Vitara XL-7 V10 diesel..... Now that would be a good combo!