plus 4, Volkswagen to Buy 20 Percent Stake in Suzuki - Gainesville Sun

Volkswagen to Buy 20 Percent Stake in Suzuki - Gainesville Sun
VW, GM and Peugeot-Citroën - Economist.com
Short report on Bridgestone published - European Rubber Journal
Suzuki Records First Retail Sale of 2010 Kizashi in U.S. - KTVZ.com
Videos From the Web: Car Videos - San Francisco Chronicle

Volkswagen to Buy 20 Percent Stake in Suzuki - Gainesville Sun

Posted: 10 Dec 2009 05:02 AM PST

The deal is latest in a flurry of realignments and partnerships in the auto industry, which has been battered by falling demand in the United States and Europe and is facing stricter environmental standards. Many manufacturers are eager to raise their profile in Asia's fast-growing nations — notably China and India — in a bid to tap soaring demand there.

Volkswagen and Suzuki said that their product portfolios, distribution networks and manufacturing capacities ideally complemented each other, and that they planned "a joint approach to the growing worldwide demand for more environmentally friendly vehicles."

"As demand continues to rise for smaller cars and for power trains with higher fuel efficiency and lower CO2 output, Volkswagen and Suzuki will offer a compelling solution for customers in emerging markets buying a car for the first time and also for customers in advanced economies seeking to lower their CO2 footprint while still enjoying the freedom of transport offered by an exciting range of cars," Volkswagen said in a statement.

Under the deal, which is subject to regulatory approval and is expected to close in January, Volkswagen will purchase 19.9 percent of Suzuki's issued shares for ¥222.5 billion, or $2.5 billion. Suzuki will invest up to half of that amount received from Volkswagen into shares of Volkswagen.

Suzuki, which operates 35 production facilities in Japan and other countries such as Indonesia, India, China, Thailand and Spain, is a world leader in the mini-car segment. It sold 2.3 million vehicles and 3.1 million motorcycles in the year that ended in March.

Volkswagen is Europe's largest car maker, and sold 6.3 million vehicles in 2008. It operates 61 production plants worldwide.

"Two of the world's leading car makers are joining forces and preparing to meet the growing challenges that lie ahead. Together we can maximize our opportunities for growth. We are proud to be cooperating with such an esteemed and valued partner," Volkswagen's chief executive, Martin Winterkorn, said in a statement.

The companies said they would form a "long-term strategic partnership."

Last week, PSA Peugeot Citroën of France said it might deepen its partnership with Mitsubishi Motors of Japan, possibly via the purchase of a stake.

And the shakeout in the U.S. automotive market earlier this year saw Fiat of Italy take a 35 percent stake in the struggling Chrysler.

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VW, GM and Peugeot-Citroën - Economist.com

Posted: 10 Dec 2009 03:36 AM PST

VW, GM and Peugeot-Citroën

Dec 9th 2009
From The Economist print edition

New ties for VW, GM and Peugeot Citroën signal a way forward for the car industry

HAVING weathered the storm, the thoughts of global carmakers are now focused on the tie-ups they hope will give them an edge in the upturn. Two such deals, the first involving General Motors and its Chinese partner SAIC, the second between Volkswagen and Suzuki, have been concluded in the past few days. Another, linking PSA Peugeot Citroën and Mitsubishi, is still under negotiation. All three are aimed at winning a bigger presence in Asia and tapping into low-cost manufacturing expertise, while sharing components and development budgets.

Of the three, the most significant is Volkswagen's announcement on Wednesday December 9th that it has agreed to pay $2.5 billion for 19.9% of Suzuki, a family-owned Japanese maker of small cars and motorcycles. Along with Fiat, Suzuki is the only international outfit that knows how to make money out of small, inexpensive cars. That is something VW forgot long ago. But it needs to relearn it, argues Max Warburton of Bernstein, as asset-management firm, if it is not to suffer from the worldwide trend towards downsizing, as new emissions laws bite and growth shifts to poorer consumers in emerging markets.

The other thing Suzuki offers is unique exposure to emerging markets. Through its 54% stake in Maruti Suzuki, it has managed to keep more than 40% of the increasingly competitive Indian market. It also has a strong position in Pakistan and Indonesia, two other teeming countries with nascent car markets. VW, which is the market leader in China and has around a quarter of the Brazilian market, was uncharacteristically late setting out its stall in India, where it only began manufacturing this year. If the alliance blossoms, and VW ends up turning Suzuki into its 11th brand, it will have taken a big step towards its long-term goal of overtaking Toyota as the world's biggest car firm.

The deal between GM and SAIC to set up a 50:50 joint venture to produce small cars in India, announced on December 4th, is another sign of the times. GM will contribute the factories and distribution network it already owns in India; SAIC will invest up to $350m in cash and other assets. The plan gives China's biggest carmaker a foothold in the second-fastest-growing car market in the world (after China), while helping cash-strapped GM to mount a more vigorous push into India, where it has struggled for several years to reach its target of a 10% market share. GM and SAIC are also intending to bring to India the ultra-cheap micro-cars, minivans and pickups they make with another Chinese partner, Wuling.

At the same time, GM said that it was ceding control of its successful joint venture with SAIC in China by selling a 1% stake to the Chinese firm for $85m. With a 51% shareholding , SAIC will have the right to approve budgets and all senior appointments. Nick Reilly, the architect of GM's Asian strategy who was recently appointed boss of Opel/Vauxhall, insisted that the sale was merely a technicality to allow SAIC to consolidate its earnings from the venture. Some observers interpret it as the price for getting SAIC's help in India. Others detect the beginning of a trend whereby Chinese car manufacturers will assert greater authority over their Western and Japanese partners. Mr Reilly merely said that GM had agreed in order to get SAIC's "full co-operation and the full co-operation of the Chinese government in other things."

PSA's negotiations to buy between 30% and 50% of Mitsubishi, which has several times been close to bankruptcy and is still carrying a heavy burden of debt, have some way to go. The two firms have had ties for several years: Peugeot and Citroën sell a rebranded version of Mitsubishi's Outlander crossover (somewhere between a car and an SUV) and PSA shares a factory with Mitsubishi in Russia. Mitsubishi, with its presence in Asia and its network of factories and dealers in America, could help the French group reduce its reliance on Europe. But cultural clashes have bedevilled such cross-border deals in the past. And PSA, whose automotive business has junk-rated debts of $3 billion, may have difficulty finding the $3.5-4 billion that a 50% stake in the Japanese firm is likely to cost.

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Short report on Bridgestone published - European Rubber Journal

Posted: 10 Dec 2009 03:29 AM PST

[fivefilters.org: unable to retrieve full-text content]

Paris -- Global Markets Direct has published a new report titled, Bridgestone Corporation - Financial and Strategic Analysis Review . The 24-page report was first published in November 2009 and is available for a price of around Euro 86, depending on ...

Suzuki Records First Retail Sale of 2010 Kizashi in U.S. - KTVZ.com

Posted: 09 Dec 2009 11:18 PM PST

BREA, Calif., Dec. 9 /PRNewswire/ -- American Suzuki Motor Corp. today announced the first retail sale of the 2010 Kizashi at Mathews Suzuki in Clarksville, Tenn. Sean Ross, a 20-year-old U.S. Army soldier stationed in Fort Campbell, Ky., purchased a black Kizashi GTS with manual transmission.

Ross, whose family currently owns two 2009 Suzuki Equator pickup trucks, arrived at Mathews Suzuki looking for a sporty car with an affordable monthly payment. After initially considering a few pre-owned models, he quickly decided on the 2010 Kizashi following an exhilarating test drive of the all-new sport sedan.

"I loved the response of the vehicle and was amazed by the comfort and various amenities offered in the Kizashi, especially the Bluetooth feature," said Ross. "I also was pleased by the financing from Mathews Suzuki, which provided me a lower rate than expected through American Suzuki Financial Services in addition to a military rebate."

Arriving in dealer showrooms this month, the all-new Kizashi delivers a premium package and experience without the premium price tag, and provides a unique blend of dynamic performance attributes and features more typical of the near-luxury sport sedan segment. The 2010 Kizashi is available in four trim levels, from the well-equipped entry-level Kizashi S priced between $18,999 for FWD and $21,749 for AWD, to the luxuriously appointed SLS model ranging from $24,399 for FWD M/T to $26,749 for AWD Continuously Variable Transmission (CVT). All prices are net of a $735 destination and handling charge.

About Suzuki

The Brea, Calif.-based Operations of American Suzuki Motor Corporation (ASMC) was founded in 1963 by parent company Suzuki Motor Corporation (SMC) and currently markets its vehicles in the United States through a network of approximately 350 automotive dealerships and numerous other motorcycle, ATV and marine distributors in 49 states. With global headquarters in Hamamatsu, Japan, SMC is a diversified worldwide automobile, motorcycle, and outboard motor manufacturer. In 2008, SMC sold more than 2 million new cars and trucks and more than 3.5 million motorcycles and ATVs. Founded in 1909 and incorporated in 1920, SMC has operations in 196 countries and regions. For more information, visit www.media.suzuki.com.

Media Contacts

Jeff Holland, American Suzuki - (714) 996-7040 ext. 2464, jeff.holland@suz.com

David Boldt, American Suzuki - (714) 996-7040 ext. 2464, david.boldt@suz.com

SOURCE American Suzuki Motor Corporation

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Videos From the Web: Car Videos - San Francisco Chronicle

Posted: 09 Dec 2009 07:43 PM PST

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