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Topic : Automobile Industry in India
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Created by : Kailash Sharma, Product Development Manager, Force Motors  | 12 11 2009 08:02:12 +0000
Industry : AutomobileFunctional Area : Global Business(Strategy & Execution)
Activity:  205 views;  last activity : 07 06 2010 20:18:09 +0000

Days after it completed acquiring 49.9 per cent stage in Porsche, Volkswagen AG has announced that it has signed an agreement with Suzuki Motor Corporation to purchase 19.9 per cent stage in the Japanese company for $2.5 billion. This is being seen as the next step in VW's plan to become the top car maker on the planet. Suzuki's expertise with small cars and its dominant position in the Indian market are both regarded as key factors in achieving that goal.

http://www.presstv.ir/photo/20091209/bageri_d20091209130326406.jpg

The world's automakers believe that emerging markets will determine the future landscape of the car market, and in those market, it is the manufacturer with the best small cars that will stand a real chance. And no one does small cars better than Suzuki. In return, VW will bring to the table its experience with making energy efficient, technologically advanced and green cars, especially hybrids.

What do you think guys, Can Volkswagen & Suzuki be the top car makers in the world? share your views.

 
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Though I agree on that they might create really good technological solutions in coming days I really dont think that they can be the top car makers in the world, I still believe General motors with so much happened to them during the recession and US had to bail them out to stay in business will have something up their sleeve, and don't forget the asian giants the Honda's and the Toyota's which I think will already be discussing the same thing in their board rooms at the moment regarding how they can be the top car makers.


By Mridula Maity, Product Development Manager, Rugel  12 11 2009 12:20:15 +0000
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Well one cannot give a concrete answer on this at the Moment 

BUT

SUZUKI = world leader in small car technolgy for years especially JAPAN.

MARUTI= Biggest contributor for SUZUKI.Market Leader in INDIA.

VOLKSWAGEN= "FOLKS WAGON" = the peoples car maker.Europes bread and Butter.

With the merge what do we get, Shared platforms, rebadged cars and the last being, Japanese reliability with German EngineeringThe partnership would also allow the automakers to pool management resources, share parts to cut down production costs and join forces in developing the next generation of fuel-efficient cars.

MSIL would also benefit from diesel engine from VW, which MSIL requires badly for their product lineup.

There are chances they can be the worlds largest car maker but NOT immediately maybe in another 8-10 years from now.

The product lineup with this merge is going up so huge that It can rival TOYOTAwhich boasts the largest fleet.HONDA'S on the other are brilliant with their engines and cars in certain markets but are known to rip you off in prices especially in the emerging markets,and their line up of cars can be discussed in your palm.

The real threat that would still arise would be from the 'oriental warriors" read HYUNDAI, which also have their left arm "KIA" to play with.Of late they have very impressive small cars and are also experimenting the $75000 territory with their super luxury EQUUS and their trump card of the "HYUNDAI CHALLENGE".They were world#9 in 2007 and is places at #4.

Whatever is said and done on this merger, I give it a thumps up.


 


By Antony , Direct Marketing Executive, General Motors(G.M.C and CHEVROLET)  | 12 13 2009 11:21:58 +0000
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Well this is the best combination east and west. the combination can create and fulfill the best need of mankind


By George Varghese, Proprietor, Jecyees  | 12 11 2009 11:49:11 +0000
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I think they can be the top car makers in the workd as both have qualities which complements eachother really well and Suzuki as said which is really a great car maker when it comes to small cars with its association with Maruti in India is a great advantage for volkswagen which is entering India with its cars and their recent launch of Beetle has given them the chance to be a great brand in the country, but then volkswagen's presence is mainly there in european part of the world and with the world going green and more impetus is given on cars which are green and hybrid and which are small and more so if their presence is there in an emerging market like India and china which is having increasing auto sales this quarter.  So  yes both of them combining gives them a real chance to be the top car makers in the world....But then they are having serious competion in the form of General motors, Honda and toyota...


By Kailash Sharma, Product Development Manager, Force Motors  | 12 11 2009 08:02:12 +0000
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                            It seems that there would be a tough competetion in small car segment, because of the entry of several automotive legends such as FORD, NISSAN,TOYOTA,CITREON,VW,GM,....to Indian market .so we can,t say which will win the race. we have to see the quality, austhetics and economical features of these segment cars with tough fight.As of me i am expecting the entry of VW polo model and citron's electric car,.. we have to wait and see the hybrid mini from suzuki,.. so judgement can be done after 2010,...


By Thiyagarajan , Engineer-Design, Flowserve  | 12 12 2009 09:22:22 +0000
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I don't think Volkswagon is capable of becoming world's top car maker, even if joins ahnds with Suzuki.

Though it may seem surprising, I feel Hyundai will be the top car maker in the coming years. It has proved its capabilities in small car, mid car and premium car segments. Hyundai's i-20 exports stand as a pointer.

Honda and Toyota are the excellent organizations, but to become world''s top car maker, i think they have a long way to go, in terms of segments.

I don't think American company can be a top car maker in the present day highly price sensitive markets.

Any way, I strongly believe it will be an Asian company!!!


By SHARATH CHANDAR REDDY, Business Development Manager - Insurance, I T C Ltd  | 12 11 2009 17:30:13 +0000
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