Hamamatsu : Suzuki Motor Corporation is keen to take a stake in Volkswagen AG soon, as the European automaker looks for shareholders willing to sell to Suzuki, the head of the Japanese firm said yesterday.
Suzuki and Volkswagen last month announced a comprehensive tie-up, and Europe's top automaker yesterday became Suzuki's biggest shareholder with a 19.9 per cent stake. Cross-shareholding between the two companies is part of the pact.
"Volkswagen's floating shares are limited. We are having them look for potential sellers," Osamu Suzuki, the chairman and chief executive of Japan's fourth-largest automaker, said in an interview with a group of reporters.
As the global car industry faces fragile demand, chronic overcapacity and stricter environmental regulations, automakers are joining forces to save the billions each would need to develop state-of-the-art powertrains.
The chairman said last month the new partners agreed they want to develop a competitive small car .
Volkswagen is the No 1 carmaker in China, while Maruti Suzuki India, 54 per cent-owned by Suzuki, commands half the Indian market.
