2009 Top Automobile Investment: VW invest in Porsche & Suzuki

By Ali Budiman

Although the world economic crisis made some of the world automobile companies declining sales, and some have had to be helped by the government such as GM and Chrysler, is not the case with Volkswagen. The Automobile Company from Germany is to step expansion by buying some shares Suzuki and Porsche.

Volkswagen takeover Porsche

Firstly, Volkswagen AG has bought 49.9 percent of Porsche stake and brings the Germany sport car maker to VW Group. Before the sale to VW, Porsche is experiencing difficult conditions due to the financial crisis. Even the financial losses also cause the Chief Executive Officer and Chief Finance Officer of the Porsche had to resign.

But it was VW Group expansion step did not end there. At the end of 2009, Volkswagen AG announced the purchase of 19.9 percent of Suzuki Motor Corporation shares worth $ 2.5 billion. Purchasing is one of the alliance bear in the world automobile industry, because Suzuki is one of the largest car manufacturers from Japan. During this, Suzuki famous has the advantage of making small cars like the Suzuki Splash and Swift.

Volkswagen invest in Suzuki

For Suzuki, a large injection of funds from the Volkswagen Group will be used for product development, increase sales and production and to be more focusing to produce a hybrid car and electric car. Suzuki also hopes they will be more competitive with Toyota and Honda in the domestic and world markets.

Through these big investments, the Volkswagen group has totally 11 car brands such us: Volkswagen, Audi, Bentley, Bugatti, Lamborghini, SEAT, Skoda, Volkswagen Commercial Vehicles, Scania, Porsche and Suzuki. With the production of more than 8 million units Volkswagen AG will become a serious challenger to Toyota as the biggest car producer in the world.

In national auto market, Suzuki distributed by PT. Suzuki Indomobil Sales meanwhile PT. Garuda Mataram Motor selling Volkswagen and Audi car. But both of sole distributor are subsidiaries of Indomobil Group, the second market leader in national auto industry.

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admin Global Automotive Industry Automobile, national auto, Porsche, Sport Car, Suzuki, Volkswagen