Cross shareholding between Suzuki and Volkswagen

Suzuki motors has planned to take a stake in Volkswagen, an European automaker as Volkswagen was looking for shareholders and is willing to sell its stake to Suzuki. Suzuki and Volkswagen have signed a comprehensive agreement which has cross shareholding as its part. Europe's top automaker with a 19.9 percent stake of Suzuki has become its biggest shareholder.

Osamu Suzuki, the chairman and chief executive of Japan's fourth-largest automaker commented on the tie up that two automakers would aggressively look into the possibility of common parts and platforms. Suzuki has also plans to obtain diesel engines from Volkswagen. This tie-up leads to save the billions each would need to develop state-of-the-art powertrains. Since the global car industry is facing fragile demand, unceasing overcapacity and stricter environmental regulations, the tie up will save companies from the trouble.