Just days after finalizing its purchase of Porsche, Volkswagen has bought 19.9 per cent of Japanese manufacturer Suzuki.
Subject to approval of relevant authorities, the transaction is scheduled to be finalized next January and Suzuki will use 50 per cent of the funds received from Volkswagen to purchase shares in the German company.
This landmark deal paves the way for what the companies are calling 'a close long-term strategic partnership'.
While both companies will remain stand-alone entities, they have agreed to exploit each others' advantages and to achieve synergies in rapidly growing emerging markets and to develop innovative and environmentally-friendly compact cars.
In a joint statement the companies said: 'In terms of product portfolio, global distribution and manufacturing capacities, Volkswagen and Suzuki ideally complement each other. The companies plan a joint approach to growing worldwide demand for more environmentally friendly vehicles.'
