Volkswagen-Suzuki JV: Time to think or split?

With an aim to become number one car company in the world, Volkswagen is working hard at every point. Earlier it was reported that German car maker acquired a 19.9 percent share in Suzuki Motors, just after buying another German giant Porsche. But as far as Automobile Industry sources are concerned the joint venture of Volkswagen and Suzuki is yet to deliver anything profitable. Reports suggest that Volkswagen was expected to re-furbish the Suzuki A-Star and was going to develop his own entry level hatchback car. But later, the project was called off by the company.

Later, Maruti India launched Maruti Suzuki SX4 affixed with a Fiat Multijet under the hood. This news was followed by another news of Maruti Suzuki cars using the same Fiat Multijet Diesel i.e. 2011 Maruti Swift and Maruti Swift Dzire.

The reason behind this change could be the expensive price tag or higher maintenance cost of Volkswagen TDi engines. Also, at the meeting in which bosses of both companies were present, the conversation about the prospect of Fiat subsidiary Magneti Marelli supplying Suzuki in India with an automated manual transmission system.

Furthermore, in Italy Suzuki Motors is already developing next generation Sedici (re-badge SX4crossover) for Fiat. Company is also planning to develop a compact SUV for Chrysler (now owned by Fiat) in a similar fashion.

As for now, joint venture of Volkswagen and Suzuki has not yielded anything productive, so speculations regarding Fiat being rightful partner of Suzuki are buzzing around instead of VW.