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VW and Suzuki settle four-year dispute

Discussion in 'Non FIAT Cars and two wheelers' started by prabhjot, Aug 31, 2015.

  1. prabhjot

    prabhjot Esperto

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    http://www.autonews.com/article/201...agen-must-sell-shares-in-suzuki-court-decides

    VW loses in arbitration, and Suzuki will soon buy out their 19.5odd% share.

    Enter FCA (Marchionne+Elkann)?! Come on, Mr. Suzuki, once bitten etc sure, but think of the future: you lose money on motor-cycles etc, barely make any money out of any business other than Maruti's in India, you'd be prudent to do a deal with your old partner: Fiat.

    Diversify risks, access new markets, share small-car and hybrid/electric tech, including the next-gen diesels (mjd2) AND even the awesome t-jet engine in India, and get a share of another family-owned firm (FCA) full-to-the-brim of premium brands and technology, not to mention Magneti Marelli etc. And you could enter commercial vehicle markets in India and elsewhere in the "third world" with Fiat's utility van/truck/tractor/agri-machinery expertise (Fiat Professional, Iveco, CaseNewHolland.)
    abhinav_nani, bharath, C_S and 4 others like this.
  2. Herbie

    Herbie Regolare

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    A court ruling has settled a four-year dispute between VW and Suzuki over their failed partnership.

    The International Chamber of Commerce ruled that VW should sell its 19.9% stake in Suzuki.

    Japan's Suzuki first requested the sale of VW's shares in 2011 after a plan to collaborate on new technology failed, but the German firm had refused.

    Suzuki's chairman said it "used to feel as if a small bone were stuck in my throat...I feel so refreshed now".

    "It was a precious experience," Osamu Suzuki said, " I learned there are different types of companies."

    Asked about future partnerships with VW he said "you will not remarry someone you have divorced".

    For its part, VW said: "We welcome the fact that there is now clarity. The co-operation between the two companies has now been ended."

    The two companies had agreed to work together on fuel efficient cars but Suzuki accused VW of withholding information it had promised to share, while VW objected to a Suzuki deal to buy diesel engines from Fiat.

    As part of the 2009 agreement, VW bought the Suzuki stake as a way of it gaining access to the Indian market for small cars, where the Japanese firm had a leading position.

    Suzuki said it planned to buy back the shares from VW at a "reasonable" price, which one analyst told Reuters was likely to be Friday's closing price of 4,151.5 yen ($34.1).

    In a statement, Suzuki said it did not foresee any financial impact on its full-year earnings.

    SOURCE : http://www.bbc.com/news/business-34103944
    --- Double Post Merged, Aug 31, 2015 ---
    I guess that makes FIAT folks happy ;) (Business Wise!)
  3. jumu

    jumu Superiore

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    Now waiting to hear full analysis from @prabjot :))

    Abdul
    prabhjot likes this.
  4. ramjn

    ramjn Staff Member Janitor

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    This is big news. Thanks for sharing this Herbie and Prabhjot.

    With Suzuki officially getting away from the VW partnership, I now see the partnership between Fiat and Suzuki may enhance further.
    Last edited: Aug 31, 2015
    prabhjot and jumu like this.
  5. asimpleson

    asimpleson Esperto

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    Fiat could really benefit a lot from the Japs learning a lot about the KISS principle and how it makes Suzuki (Maruti) a trusted brand and product company. Read SX4.
  6. prabhjot

    prabhjot Esperto

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    http://www.autonews.com/article/201...e-squeeze-on-gm-gms-response-why-bail-out-fca

    An interview of Marchionne's to a very respected and serious automotive-business journalist and portal.

    Marchionne (and John Elkann/EXOR) are thinking VERY much bigger-even than a deal with Suzuki, though hopefully these potential developments are not mutually exclusive. He sounds in this interview to be going, soon, for even a 'hostile takeover' style attempt to put public and capital-market pressure on GM to merge (or, at least, collaborate massively).

    Fiat-GM, GM-Suzuki, and Fiat-Suzuki are old cronies together, aren't they?

    Possible, though GM (in their bureaucratic foolishness) will feel no urgency to 'deal' and so some 'hostile' pressure will be essential, and Mr.Suzuki &son have no urgency to either, given the gigantic and rising profits/marketshare etc of Maruti in India.

    But, given (a) the permanent global economic 'crisis' etc (b) the new regulatory burdens on emissions etc (c) the great threat of slow or rapid disruption of the car industry by the IT firms (automated driving etc) (d) GM and of course Suzuki's total failure to cultivate any higher-margin, premium/luxe brand of their own which is where most future will ccrue for car firms as they do already (e) and pressure brought to bear on GM by capital market experts and/or US politicians esp right-wing ones from the Republican party......

    it/they'd be well-advised to sit down and talk with the visionary Marchionne. Marchionne's personally essential to the work-ability of any such big deal, esp with GM, and he won't be around much longer than 2020, Mr.Suzuki is 85 years old, and GM as usual has weak and bureaucratic leadership since it is a promoter-less firm.

    Marchionne and John Elkann are thinking of the future, do not like what they see coming for the industry, and hence what to bang heads together to act now.
    ramjn, asimpleson and jumu like this.
  7. C_S

    C_S Amatore

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  8. asimpleson

    asimpleson Esperto

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    I just hope FCA sees the aspirations of Suzuki and the fact that it will at any cost not want to take any risks that will undermine its position in India or jeopardize the re-entry in Western markets.

    There is definitely a lot FCA can learn from the Japs and Marchionne is already a keen observer or a pundit on Toyota. Suzuki could bring a lot of goodwill to Fiat if only they do not interfere too much in their Indian operations. Maruti - Suzuki is essential for India and Indians to have a stable automotive giant who has just the cars for huge number of aspiring people irrespective of status.

    Fix it now and fix it cheap Tony..says the Maruti owner. :joyful:
    prabhjot and ramjn like this.
  9. jumu

    jumu Superiore

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    I have my doubts on suzuki- fiat alliance. If they even had an inkling towards such an arrangement, suzuki wouldnt have invested in their own diesel engine manufacture with which they are currently struggling. They could have given a mandate to fiat to produce it and
    save themselves of a headache into uncharted territory. Of course each mfr would like to stand on their own legs too.

    Abdul
  10. prabhjot

    prabhjot Esperto

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    Mr. Suzuki, like all especially Japanese family-business owners, is prickly about his 'national' independence, presumably only more so because of his VW experience. And is therefore in no hurry to'deal', especially given Maruti Suzuki's further rising dominance in India? Suzuki's share price, entirely due to Maruti, has been soaring, its marketcap is out of proportion to its car sales (given very very high profit margins in India). Any deal will therefore be quite exorbitant, cash-wise. Unless it's like a share-swap?
    asimpleson likes this.

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