VW and Suzuki plan a joint approach to the growing worldwide demand for more environmentally friendly vehicles
Volkswagen AG and Suzuki have reached a common understanding to establish a comprehensive partnership. A framework agreement has been signed by representatives of both companies today. The partnership marks an important step towards the future for both Volkswagen and Suzuki. As demand continues to rise for smaller cars and for powertrains with higher fuel efficiency and lower CO2 output, Volkswagen and Suzuki will offer a compelling solution for customers in emerging markets buying a car for the first time and also for customers in advanced economies seeking to lower their CO2 footprint while still enjoying the freedom of transport offered by an exciting range of cars.
To support a smooth development of this relationship, Volkswagen will purchase 19.9% of Suzuki’s issued shares. The Closing of the transaction is subject to approval of the relevant authorities and is expected in January 2010. Suzuki intends to invest up to one half of the amount received from Volkswagen into shares of Volkswagen. Both companies will form a long-term strategic partnership based on this which will support
their successful strategies in these challenging times.