Wolfsburg (Germany), Dec 9 (DPA) German carmaker Volkswagen AG and Japan’s Suzuki Motor Corp plan to enter into a long-term strategic partnership, the two companies said Wednesday.
Volkswagen, Europe’s largest carmaker, is to acquire a 19.9 percent stake in Suzuki, the German company said. At the same time Suzuki would invest up to half of the price into Volkswagen shares. The independence of both companies was to be maintained in the partnership, Volkswagen said.
The transaction needs to be approved by authorities and should be concluded by January 2010, Volkswagen said.
A Suzuki spokesman in Tokyo also said the tie-up deal still needed to be finalised. The two companies are to hold a news conference in Tokyo later Wednesday.
The partnership with Suzuki, which is known for building small offroad cars and motorbikes, is to improve Volkswagen’s position on the Asian market.
Speculation over a Volkswagen-Suzuki partnership had been rife for several months.
