After repeatedly expressing a burning desire to purchase a bike company-- preferably a "small, valuable motorcycle manufacturer," VW head Ferdinand Piech has now gone for the gold, announcing a $2.5 billion, one fifth stake in Suzuki.
Piech is a self-professed bike junky, once stating that "I myself drive a Ducati. 180 horses and more power per kilogram weight than a 1,001-hp Bugatti." But it seems the Suzuki transaction would hit two birds with one stone: it would help Piech edge Volkswagen towards the goal of becoming the world's number one carmaker-- especially with the aided penetration of crucial emerging markets like India-- while satisfying his craving to control a motorcycle manufacturer.
What will happen to the Suzuki motorcycle lineup, which includes icons like the Hayabusa and the GSX-R lineup? Presumably not much-- at least initially-- since motorcycles constitute only 16.9% of Suzuki's net sales. But the repercussions of the German/Japanese union is intriguing, to say the least... thoughts?
Source: Reuters
Related:
Photo © Basem Wasef; Click for 2008 Suzuki Buyer's Guide
I’m not impressed, look what the Germans did with Chrysler. Compare sale figures of BMW motorcycles and Suzuki motorcycles.
I am not sure what to think. I am both a VW fan and a Suzuki bike fan, so I truely hope things work out for both.
I think maybe it will help Suzuki’s car lineup in the future the most. Even in Japan their cars are usually considered second rate, whereas their bikes are usually well received and on par with the other domestic manufacturers.
Hmmm I am a little nervous about my GSXR. I don’t want them swapping in any VW Bug parts…
I just hope it doesn’t affect their sportbike line up adversely.
I believe BMW has grown it sales growth while Suzuki has gotten stagnant such that there will be no new street motorcycles from Suzuki in the 2010 model year. So… not sure that’s a valid comparison these days.
VW Group has a decent track record of improving brands it acquires. Lamborghini is one example. VW is on track to vie for top 3 automaker in terms of sales volume, right up there with Toyota and GM. The new Suzuki Kizashi sedan also looks pretty good.
I don’t think they would mess with the motorcycle business. Any changes from a business and engineering standpoint would likely start with Suzuki’s automotive division.
My 2/100ths USD.
Would have been nice if they bought MV Agusta or even Buell.
Volkswagen has an interest in 3 wheeled economy “cars”.
But they are considered motorcycles in places like the US and are usually sold through motorcycle dealers. Now they can create 3 wheeled Volkswagens, but badge as Suzuki and sell through Suzuki shops. (Maybe?)
The last responder is correct and doesn’t Suzuki own Kawasaki now and if VW used the excuse of cars for 3 wheeled vehicles VW will probably try to focus on the percentage that is motorcycles a small vehicles or be on the board to spin off the cycle side were VW may be able to control and merge with VW automotive company in the future.
I’m not sure what to think. I never understood what image Suzuki stands for comapred to the other brands like Honda, Triumph, BMW or Kawasaki. Low cost?
Anyway, VW brand sure doesn’t stand for mfg quality, so I wouldn’t be encouraged at the long term prospects of this marriage..
If I’m not mistaken, Kawasaki Motors is still a wholly owned subsidiary of Kawasaki Heavy Industries (KHI). Suzuki and Kawasaki did have a technical partnership earlier this decade but that didn’t go anywhere – there was some tech transfer in their offroad and I believe cruiser product lines but by and large, their street bike offerings remained independent.
Volkswagen has an interest in 3 wheeled economy “cars”… Now they can create 3 wheeled Volkswagens, but badge as Suzuki and sell through Suzuki shops. (Maybe?)
There’s no market for those, since no one is buying them. No one is buying them because no one sells them. Until there is an extensive market of people who have already bought a 3 wheel car, no manufacturer will be the first to sell one. Do you see the problem here?
“Compare sale figures of BMW motorcycles and Suzuki motorcycles.” Compare the sales figures of Acuras to Volkswagons. The standard vehicle always outsells the expensive luxury brand.