VW buys £1.5 billion Suzuki stake

Volkswagen AG’s Chief executive officer Martin Winterkorn shakes hands with Suzuki Motor Corp Chairman and CEO Osamu Suzuki in Tokyo

Germany’s Volkswagen AG will buy a one-fifth stake in Suzuki Motor Corp for $2.5 billion (1.5 billion pounds), tapping the Japanese firm’s expertise in small cars and dominance in India as VW seeks to become the No.1 automaker.

The move is the second coup this week for ambitious VW Chairman Ferdinand Piech, coming on the heels of the German carmaker’s 3.9 billion euro (3.5 billion pound) purchase of a 49.9 percent stake in sports car maker Porsche AG.

For full story follow this link: http://uk.news.yahoo.com/22/20091209/tbs-uk-suzuki-volkswagen-03c9bed.html