Bob
10th December 2009, 01:33
Suzuki has entered into a ‘strategic alliance’ with VW-Audi-Porsche. The deal sees VW take a 20% share of Suzuki, with Suzuki obliged to spend half of this money in the purchase of VW stock.
What this means is that VW now has a 20% share of Suzuki for an effective price of 1.25 billion US dollars.
The move is unlikely to have much impact on Suzuki’s motorcycle arm in the short term, but with the new shareholder’s massive buying power behind it, there must be potential for savings on procurement of parts. VW has said previously it would like to enter the motorcycle sector, with rumours of moves to purchase Ducati, MV Agusta from Harley-Davidson… or even making an offer for Harley itself, in light of the current financial position of that company.
What this means is that VW now has a 20% share of Suzuki for an effective price of 1.25 billion US dollars.
The move is unlikely to have much impact on Suzuki’s motorcycle arm in the short term, but with the new shareholder’s massive buying power behind it, there must be potential for savings on procurement of parts. VW has said previously it would like to enter the motorcycle sector, with rumours of moves to purchase Ducati, MV Agusta from Harley-Davidson… or even making an offer for Harley itself, in light of the current financial position of that company.