Friday, January 7, 2011

Maruti Suzuki Helps Volkswagen to Make Small Car in India

Volkswagen, German manufacturer and Suzuki Motor corporation, Japanese car manufacturer had plan to make global partnership to introduce small car, which will be priced Rs.4 lakh. So Indian auto company Maruti Suzuki will help Volkswagen AG to develop and manufacture a new small car in India.

Experts will be brought by Maruti, a unit of Japan's Suzuki Motor corporation from Volkswagen or Source engines will be bought by Maruti company from the Wolfsburg, Germany-based car manufacturer for manufacturing diesel engines. So there is benefit of sourcing engines directly for Maruti from the German car manufacturer, Volkswagen. At present Volkswagen has two budget models such as VW Polo with the price of Rs 4.42 lakh and the Skoda Fabia with price of Rs. 5.08 Lakh.


A global partnership has been announced by two companies in December. Volkswagen will be allowed by this partnership to have a stake of 19.9 percent in Suzuki Motor Corporation. These two companies are eager to be as synergies to get good share in emerging markets, especially in India.


Chairman of SMC will visit India to discuss with Volkswagen regarding the different synergy options. At least three major announcements on joint product development, contract manufacturing and other important synergies, will be made after discussing various possible synergy options with Volkswagen officials.


Already work on developing a new small car had been started by Volkswagen.


SMC is ever to get the technology, particularly smaller diesel engines from Volkswagen. Volkswagen's diesel technology will be accessed by Maruti. Maruti gets more access to European market along with accessing to diesel technology.

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