Suzuki CEO Intimates Deal with VW is Only Rumour and Speculation
Canadian Auto Press

A number of online publications have been speculating on an impending partnership between Japan’s Suzuki Motor Corporation and Germany’s Volkswagen AG, although the former automaker has been strongly denying the validity of such a tie-up.

2009 Suzuki Palette

While Volkswagen appears to need another nameplate to add to its 10-brand arsenal as much as it needs a Phaeton at the topmost position of its namesake VW marque, the rumour exists because there is a reasonable business case behind it. VW’s empire is Euro-centric despite being a global brand, and Suzuki’s automotive division offers a clearly Asian solution from tiny Kei cars to a unique lineup of compact off-roaders.

The rumours depict VW AG purchasing a 10% stake in Suzuki’s automotive operations, but Suzuki’s chief executive, Osamu Suzuki, says there is nothing to substantiate all the internet chatter.

“There’s a saying that there’s no smoke where there’s no fire, but you’re all creating smoke where there’s no fire in this case,” Mr. Suzuki told Automotive News. “There’s been nothing on this (impending Volkswagen deal) from our side.”

Of course, Mr. Suzuki’s comments have only fanned the flames of those propagating the rumour with reports speculating a deal will be reached before year end, if at all.