Tokyo, December 09: Suzuki Motor Corp said Volkswagen will take a 19.9 percent stake in it for about 222.5 billion yen (USD 2.5 billion) as part of an alliance between the two automakers.
Suzuki, Japan’s fourth-largest automaker, said it would hold a news conference at 0800 GMT to brief on the capital alliance. Chairman and Chief Executive Officer Osamu Suzuki will attend, it said.
“There is no negotiating partner other than Volkswagen” at the moment, Suzuki said earlier.
The alliance would create a broad sales network in Asia since Volkswagen already has a strong presence in China, while Suzuki is a big player in India, the Yomiuri noted.
Other media have reported talks between Europe’s biggest car marker and the Japanese producer of small vehicles and motorcycles, with some speculating a deal may be reached by the end of this year.
German magazine Automobilwoche had in September reported that negotiations were at an “advanced” stage and that an agreement in principle was expected this year.
–Agencies