Thursday, May 20, 2010

Volkswagen, Maruti start integration talks

Volkswagen (VW) India and Maruti Suzuki have begun the process for integration between the two companies. “I can confirm that visits have been taking place and teams from the two companies have been sitting together to discuss and define common projects,” said Joerg Mueller, president and MD, Volkswagen India (VW) and chief representative India.VW acquired 19.9% stakes in Suzuki Motor Corp in December last year.

“Discussions have begun between the two teams. The proposals are being studied at Volkswagen headquarters and a final picture will emerge in two to three months,” Mueller told media persons in Pune. Recent reports suggest that the VW could be possibly looking at the new Wagon R and Ritz models from the Maruti Suzuki stable to be re-badged as VW cars in India. Mueller however, preferred not to comment on this issue. The two companies are also learnt to be looking at possibilities of sourcing Maruti's engines, components and aggregates for Volkswagen' s Indian models.

Mueller confirmed that the company was still interested in the VW Up! model for the India market. “We still need to look at the Up! concept because small cars form the biggest segment in India, around 50% of the market, he said. Should the model be considered for the India market, the company could be looking at pricing it between Rs 3-4.5 lakh,” he added. A couple of days ago, Volkswagen released its first official sketch of its sedan for the India market.

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