Skoda may use Maruti’s expertise to develop small car for India

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We may soon see cars developed jointly by Skoda, Maruti Suzuki and VW

Skoda Auto India has said that it may seek some help from Maruti Suzuki for developing a small car priced between Rs 3 to 5 lakh rupees. The new car is proposed to be introduced in the year 2012. Skoda Auto, which is a Czech company is a group company of Volkswagen AG of Germany. Volkswagen in turn had picked up 19.9% per cent stakes in Suzuki last year for $2.5 billion. The two companies have been exploring opportunities to synergize ever since. A stake in Suzuki gives VW some rights to explore the possibilities of using some of Suzuki’s resources in creating better products for its own and its group companies’ use.
It’s notable that Suzuki as a global carmaker has immense experience in producing small cars with tight cost targets. The company’s operation in a cost-conscious market like India has enriched its know-how about making small cars on a budget.
Confirming the development, Thomas Kuehl, board member and director (sales and merketing) Skoda Auto India, Thomas Kuehl said “ there could be a possibility that we will take Maruti’s input in the small car”
“Suzuki is interested in our engines, and we are interested in Suzuki’s expertise in small car and without Maruti, Suzuki will not be in today’s position. The decision of Maruti Suzuki’s inputs in Skoda’s small car will be taken by both the (firms’) headquarters.” He added

Source : The Free Press Journal

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