VW's Shot Across the Bow

Last Monday we reported that VW had quite publicly announced its plans to unseat Toyota as the world's largest automaker by 2018. The company has certainly wasted no time moving ahead with those plans. Earlier today, VW spent around $5.8 billion to acquire 49.9 percent of Porsche Automobil Holding (by all accounts opening the door to a full takeover down the road, which is an impressive sort of jiu-jitsu maneuver since Porsche tried -- and failed spectacularly -- to do the same thing to VW this summer). And it's just been announced that VW is now the proud owner of a 19.9 percent stake in Suzuki, to the tune of an additional $2.5 billion.

And while Suzuki may not have the same cachet as Porsche in the U.S. (despite some favorable reviews of its new Kizashi), it is the dominant brand in the important Indian marketplace. VW's sales -- thanks in part to being the market leader in China, the world's largest market -- combined with Suzuki's numbers, outpace even Toyota, still the world's largest brand. However, Suzuki CEO Osamu Suzuki was quick to point out that the deal was not a takeover but a partnership. Suzuki will benefit from VW's engineering expertise and hybrid and other forward-looking powertrains. "Suzuki is not becoming a 12th brand for Volkswagen," he said.

(Source: Automotive News.)