Suzuki Motors was not looking to share its platform for its models with the German Manufacturer, Volkswagen who already claims a twenty percentage of a stake in the Japanese auto major.
The 19.9% stake bought in 2009 for $2.5 billion also reaffirms plans to go ahead with the prospect of jointly producing vehicles.
Meanwhile, the MD and CEO of Maruti Suzuki India, Shinzo Nakanishi revealed that the chief cause for this was the increased manufacturing as well as the product development prices of Volkswagen.
According to his declaration, this would further make the business not feasible for them.
They were planning on restricting the association between two car manufacturers to just sharing the production facility for the purpose of producing the models, under the joint venture.
They could as well form an Original Equipment Manufacturing deal with Volkswagen, as was in the instance of Nissan that brings out the A-Star, a hatchback as the Pixo in Europe.
They mainly sealed this deal in a bid by Volkswagen to create a niche for themselves in the Indian Market, where Suzuki is already a vital presence.
Volkswagen plans to manage its expenses by exploiting the manufacturing schemes by Suzuki, even as they create more numbers of small cars, thus leading to a move towards the compact cars, for the market worldwide.
Both the manufacturers could as well come out with some unyielding publicity, worldwide by the upcoming 6 to 8 months time. A Few of the ventures are due for introduction within the conclusion of 2010 or even the beginning of 2011.
We see that Maruti is more keen on imbibing the technology employed by Volkswagen, namely the diesel engine, whilst the German Auto manufacturer has designs on the expertise of Maruti Suzuki to produce large quantity of cars, both efficiently and at low cost.
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