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VW-Suzuki marraige on rocks; Suzuki - FIAT getting closer

Discussion in 'Fiat India News' started by bnzjon, Jul 21, 2011.

  1. asimpleson

    asimpleson Esperto

    Linea 1.3
    And what further with latest VW and Suzuki news, anyone? The last reference was dated a year back. In India and China, VW had aimed to gain more from Suzuki, which in turn was more keen on technology transfer and future developments in hyrbid technology. Is the partnership matter under arbitration settled yet?
  2. prabhjot

    prabhjot Esperto

    delhi ncr

    Suzuki brings low-risk revenues and profits (vicariously through Maruti S India), and enhanced use of FCA technology (engines, even future platforms).

    It therefore enables FCA in India to specialize in the more premium/higher margin brands, niches and product lines, esp Jeep but also (hopefully) say the Fiat 500 line-up here, and a few years dow the line Alfa Romeo too.

    The Tata JV would NOT need to troubled at all, since presumably Ranjangaon will be used EVEN MORE for engine supplies to both Tata and esp Maruti (the 1.6 mjd? the 2 litre mjd? even the next-gen t-jet). Just an expansion of already existing cooperation between Fiat, Tata and Maruti. Competitive brands (frontstage), relatively cooperative firms (backstage)?!

    Maruti will surely operate at total arms-length, but FCA will benefit hugely from a risk-free and relatively lowcost acquisition of a strong marketshare (in financial terms) enabling diversification for FCA globally, and a 'go-more-premium+niche' specialization (despite low volumes) for FCA India?


    Analysts and journalists expect the arbitration award to be sometime towards the end of this year. Don't know why it has not happened already. The speculation of course is that Marchionne and Mr. O Suzuki are already to go, and are just waiting for a presumably favourable ruling from the arbitration court!
    asimpleson likes this.
  3. acechip

    acechip Superiore

    Something tells me that investors and finance companies may not be happy with Fiat's acquisition spree. Fiat seems to be looking at positioning itself as a "brand aggregator" company in future , like GM .
  4. prabhjot

    prabhjot Esperto

    delhi ncr

    Marchionne's targetting the colossus GM, of that there is little doubt left, in pursuit of his longstanding 'consolidation' vision.

    Mr.Suzuki has just emancipated himself from the universally dis-liked VW group. And has growing marketshare in india, where it enjoys profit margins greater by far than most luxury and high-end car marques (12% going on 15%, according to their own statements to analysts etc in India). And therefore, between maruti and suzuki japan has a combined market capitalisation FAR out-of-proportion to its puny 2.8 million small, budget-car global sales total.

    It is also a 'family-owned' business that still has its prickly founder-patriarch in-charge. And it is Japanese. Chances of any big, merger-like move from Suzuki with the likeliest suitor, FCA, are dim, then, precisely because Suzuki, thanks to Maruti, is doing so well financially, making a 'deal' rather expensive, EVEN if Mr.Suzuki's open to one, which this article says he is unlikely to be, given the bitter experience with VW. Who really knows, though? After all Suzuki's other businesses including scooters and motorcycles are loss-making globally, and their dependence on the Indian market is extreme, so perhaps the longer-term view will prevail EVEN with grumpy, old Mr.Suzuki?

    Perhaps, though, joint projects in india with Fiat are still possible, in the interim, beyond the mjd engines and the Magneti Marelli amt gearbox-es. Perhaps, Maruti could use a Fiat model or two, re-badged, if FCA deems itself unable to be able to market and sell-well such models in India: the 500L, the 500L Living, the Doblo? A 500L has been spotted testing on nh8 near Gurgaon-Manesar (where Maruti's 2 factories are located), and a 500L Living was recently imported by them for 'r&d' purposes, after all!

    Of course suzuki's decent growth in many European countries (the Uk, parts of eastern and Southern europe with the s-cross and the vitara), as a low-cost-yet-good-engineering-quality, Dacia-like brand, is predicated on FPT multijet diesel engines in the main.
    asimpleson likes this.

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