Suzuki, VW plan joint products, Maruti to gain

08 Sep 2010 Evaluate

Japanese car major Suzuki is planning to develop joint products with Volkswagen for the global markets, which could create new opportunities for Maruti Suzuki. Suzuki Japan was looking at ways to synergise operations with the German auto behemoth after it bought stake in this year. Interestingly, Suzuki's statement comes months after Christian Klingler, a Volkswagen board member, had told that the European auto major could take the help of Maruti in development of a new car that would be placed below the company's Polo compact. Suzuki said joint component production would be the 'starting point' of the engagement between the two companies and will help them reduce costs. And these could be for models that have large volumes.

In a separate development, Maruti will set up a new plant at its Manesar facility at an investment of close to Rs 1,900 crore with a capacity of 2.5 lakh units. This would be part of the Rs 6,125 crore investment the company plans to make till 2013, including for a R&D facility at Rohtak and engine capacity expansion. Maruti's current capacity between its two facilities Gurgaon and Manesar is about 1.2 million units and it plans to increase this to 1.75 million units by 2013.

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