The proposed tie up between Suzuki and Volkswagen for global products is expected to yield gain for the Indian supremo Maruti Suzuki. The chairman of Suzuki said that the company is seeking more potential from the collaboration with the German car maker as the deal has envisaged 19.9% stake from Suzuki. The products are earmarked for the global market in the event of the tie materializing, he said. This version comes in the wake of an earlier statement issued by the board member of VW disclosing the proposed bid by a European firm for JV. The venture will make Maruti to get more exposure for new launches
and VW will get a model below its Polo. The proposed JV will be a beginning stage in the upcoming progress for both companies and will end up with cost reduction. Suzuki will have more models under this venture though no final version about retail sale is revealed. In the AGM meeting of Maruti Suzuki, the chairman made announcements regarding further investments and expansion plans. There will be a new facility at Manesar at an investment of Rs1900 crore to produce 2.5 lakh annual units. This will be under Rs6125 crore investment for the period of three years, and R%D upgrading at Rohtak for making increased engine capacity. Currently there are two plants for Maruti namely Gurgaon and Manesar combined to yield 1.2 million units which is targeted for increase to 1.75 million by 2013.