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- Volkswagen
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12:01 a.m. EDT, December 22, 2009
Reuters reports from Frankfort today that Volkwagen AG may be nearing the end of its recent spate of new strategic partnerships.
According to CEO Martin Winterkorn, the recent deal-making spree, which included the acquisition of a stake in Suzuki Motor Corp., is winding down. "There are some who knock on our door. Some really want to come under our roof as they see we're on a good path strategically. But we are satisfied with the current line-up. I don't see any need [for further merger and aquisition activity]," he said, in an interview with German WirtschaftsWoche.
Volkswagen is the largest automaker in Europe. Earlier this month, it acquired a 49.9 percent share in the sports car portion of Porsche, following that up with the Suzuki deal just a few days later.
When asked whether the Volkswagen stake in Suzuki would increase beyond the 19.9 percent just acquired, Winterkorn said the current share of 19.9 percent was enough for now, adding that, "Time will tell whether it will rise."
Other aspects of recent deal-making include Qatar taking a 17 percent voting stake in Volkswagen, acquired by exercising options and replacing ordinary shares with preferred counterparts, and the cancellation of the VW contract for their Magna Steyr division to produce the Porsche Boxster. That model will now be produced at Karmann, which Volkswagen has owned some assets of since November.
Winterkorn assured the press, "Believe me, Magna is very satisfied with this solution. We have made up for the expenses that were caused."
What can we expect from Volkswagen in 2010? Winterkorn says that order books are sufficiently filled until early in the year, and that he expects his company to gain further market share. Of that, he says, "There is no doubt about that in my view."




