Maruti and Volkswagen Will Not Share Platform in India

Thursday 05 August 2010, 00:00 AM by Payal Pathak

Suzuki and Volkswagen shook hands with each other last year where the German carmaker acquired 20% stake in the Suzuki Corp. Both the companies agreed to share their technologies to grab a better foothold in the international market. While the Japanese car manufacturer will lend its small car expertise in marketing and developing better and fuel efficient cars for the future world, Volkswagen will impart its German engineering to enhance the performance and engineering of the cars developed jointly.

It was widely speculated that both the companies will develop a small car for the emerging markets especially in India which is one of the major emerging markets amongst the BRIC nations. As per the latest comment from Maruti Suzuki India Managing Director and CEO Shinzo Nakanishi, the company may have an OEM deal with VW but the teams from both the companies are still in discussions to chalk out a final road map.

“There is no possibility of platform sharing (with Volkswagen) as the German company’s production and product development costs are very high and that could make our business unviable,” Shinzo Nakanishi stated further. Nevertheless, he stated that both the companies are definitely expected to make some solid global announcements in next 6-8 months. “It takes time as both companies are very big, so to find synergy is not easy,” he said.

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