Volkswagen can't rule out takeover of Suzuki: Report

Sep 19, 2011 |

Reuters

Frankfurt

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Volkswagen could make a move to take over Japan's Suzuki, German magazine Der Spiegel reported, citing an unnamed senior manager at VW.

"I do not rule out this possibility," the weekly quoted the person as saying on Sunday. Volkswagen declined to comment on the matter.

Suzuki said on Monday it wanted to end its two-year alliance with VW after the German carmaker accused it of violating the pact by agreeing a diesel engine supply deal with Italy's Fiat.

Suzuki chairman and CEO Osamu Suzuki has offered to buy Volkswagen's 19.9 percent stake in his company with cash, but the German company has said it has no intention of selling.

VW, which has tried to patch things up since its relationship with the Japanese carmaker turned sour two months ago, has said it was happy with its investment in Suzuki.

According to Spiegel, VW cannot raise its stake in Suzuki without the Japanese company's consent as long as the alliance between the two companies is still in place. But if Suzuki cancels the partnership, VW would be free to stock up, it said.

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