Suzuki, VW agree to form world's largest auto alliance

[FarCenter]

The Yomiuri Shimbun http://www.yomiuri.co.jp/dy/business/20091210TDY01304.htm

Suzuki Motor Corp. announced Wednesday that it signed a framework agreement to establish a comprehensive partnership with Volkswagen AG of Germany.

The partnership will result in the world's largest automotive alliance, since the two companies' combined auto sales will exceed that of Toyota Motor Corp.

The Suzuki-VW tie-up will have a huge impact on the power balance of automakers worldwide.
<SNIP>
The alliance will give Suzuki access to cutting-edge technologies the German auto giant has developed for electric cars and other eco-friendly vehicles, in which Suzuki has lagged behind.

In return, Volkswagen will work with Suzuki to develop a compact car, an area in which Suzuki excels, and exchange information on emerging markets such as India, where Suzuki enjoys strong sales.

Volkswagen and Suzuki sold 4.78 million and 1.71 million vehicles worldwide, respectively, between January and September. During the same period, Toyota, the world's sales leader in 2008, sold 5.64 million units.

Suzuki and Volkswagen also plan to increase cost-competitiveness by shared use of auto parts.

Suzuki will sell its ordinary stock, which it gradually repurchased from previous tie-up partner General Motors Co., in a third-party allocation.
<SNIP>

[OneTenthofOnePercent]

1. Cheap ecobox imports with german engineering.

Sounds promising.