Show Your Love By Sharing
Honda Motors CEO and President, India, Mr Takashi Nagai said, "This (VW-Suzuki partnership) is very worrying for us," referring to the partnership between car manufacturers Suzuki and Volkswagen. Honda disclosed their displeasure over such partnerships. Honda said that such partnerships are threatening for their survival in the country as these partnerships will bring down manufacturing cost by a huge margin.
The partnering companies can share their R&D along with the car's platform. Honda cannot save costs in such a way because of which their products will always cost higher than their competitors. Honda has suffered losses due to such ventures in American and European markets, and they believe VW-Suzuki partnership has the potential to remove their hold from the Asian market.
Not only Honda, VW-Suzuki partnership is a threat to India's second largest car manufacturer, Hyundai too. Suzuki along Maruti has established themselves as the leaders in manufacturing and selling small car in India. Now imagine manufacturing a small car with the German expertise from VW? Sleepless nights for Honda and Hyundai officials, until they don't find a solution to this problem.
