Volkswagen eyeing stake in Suzuki?

Volkswagen is pursuing Suzuki for a 10% stake in the company with the aim of jointly developing small cars for emerging markets, according to reports by news agency Reuters.

Suzuki is considered an important player in the small car segment in its home market where it produces micro cars with as little as 660cc engine capacities. Moreover Suzuki is the second largest automaker in Japan behind only Toyota. 

In developing markets like India, Suzuki is the largest selling automaker with their Alto mini car (800cc) topping the sales charts since 2004. Volkswagen believes that Suzuki’s current range of micro-cars and its expertise in the segment holds a lot of value especially in today’s congested urban traffic scenario and the needs of emerging markets as well.