Volkswagen Suzuki Partnership Making Little Progress

William Maley - Editor/Reporter - CheersandGears.com

March 16, 2011

The Volkswagen Suzuki partnership hasn't gotten off to the best of starts. Formed back in 2009, the partnership between the two has barely made any movement. The two companies had ambitious plans for the partnership; Volkswagen wanted access to Suzuki's Indian subsidiary, Maruti Suzuki which holds about half of the Indian auto market. Suzuki wanted Volkswagen's help on diesel, hybrid, and electric car technology. What is holding up the partnership?

“We are still in a period where we have to establish trust. We here in the western world are sometimes more decisive…the Japanese culture of achieving consensus is difficult," said Martin Winterkorn, VW CEO.

A source at Volkswagen says the slowdown is due to lack of transparency which caused Suzuki to slow down on decisions, as the brand hasn't gotten all the technology it wants.

“They can’t seriously expect that we give away all our treasures to a partner that we only minority-own.”

However, Volkswagen says the partnership is still on and the two companies have plans in the works. Whether any of those ideas see the day of light is up in the air.

Source: Motor Trend via Financial Times (Subscription Required)

I didn't even know they were partners. Though it appears they barely are.

I like that concept.

I was hopeful this would improve Suzuki's automotive fortunes, especially here in the US. Alas.

I think we all know what the German's idea of a "partnership" is...

That's like when you were in high school and offered to partner up with the developmentally disabled kid on a project. Sure you look altruistic, but one of the partners doesn't really bring much to the table.

On second thought, comparing disabled kids to Suzuki is unfair to the kids, they at least have a chance to be a useful member of society.