1988 Suzuki Samurai Jx on 2040-cars

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New investor allows Suzuki to fend off VW

After years of legal wrangling, the long-soured partnership between Volkswagen and Suzuki looks finally to be coming out of arbitration, according to Bloomberg. As a sign of the Japanese brand's improved fortunes, hedge fund Third Point LLC recently bought an undisclosed stake in the company. The investor reported seeing a major opportunity in the successful Maruti Suzuki business in India. As an investment, the only major problem that Third Point found with Suzuki was its legal battle with VW. "The company's greatest asset is its low-cost manufacturing process for vehicles for the emerging market consumer," the fund said in a letter, according to Bloomberg. Third Point reportedly also wants a seat on Suzuki's board, despite being a minority shareholder. The alliance between Suzuki and VW goes back to late 2009. In the deal, the Japanese brand was meant to get access to cutting-edge tech, and the German firm got a helping hand towards better establishing itself in India and Southeast Asia. Things didn't go as planned, though. Less than two years later, Suzuki's boss publicly derided the deal. Eventually, the allegations started going back and forth, and the two have been working out a way to untangle practically ever since. Among the biggest issue has been how to get back the 19.9 percent stake that VW purchased. According to Bloomberg, the arbitration is now technically over. With the divorce nearly final, the two sides are just waiting on a decision on how to split things up. Suzuki may even just buy VW's stake to get the shares back.

Suzuki reopens India plant post-riot with police outnumbering workers

Suzuki's plant in Manesar, India builds cars for Australia, specifically its Alto small car. Or at least they were building cars before violent worker riots forced the factory to close. The plant has been idled for five weeks as a result of worker violence that led to the death of one manager and 95 injuries. The riot was spurred over a labor dispute - specifically, a gulf in salaries between temporary workers and their salaried counterparts who earn triple the contract workers' wages.
According to reports, on Tuesday, the factory re-opened with more than 1,200 police officers stationed around the plant. The staff of actual workers at the plant numbers just 75 currently, meaning the police force greatly outnumbers Suzuki employees.
The number of employees will eventually grow to 300, and the officers will run in shifts of 100 at a time, but the initial disparity of workers to police is meant as a show of force to the more than 500 permanent and 500 temporary workers who were found to be involved in a July 18 riot.

Larger SX4 to lead raft of new or revised Suzuki models

A few weeks ago, we showed you what is likely in store for the next-generation Suzuki SX4, but What Car? now has some insider info of what might be in store for other products in the aging Suzuki lineup... at least in the UK.
When the official design sketch of the Suzuki S-Cross concept was released, Suzuki said that the concept car would be a C-segment crossover, closer in size to the Grand Vitara, and going up against some higher-volume rivals like the Ford Kuga (Escape) and Nissan Qashqai (similar to our Rogue). The Suzuki Grand Vitara is also due for a redesign, and both models will likely be on showroom floors together, with the Grand Vitara acting as the more rugged alternative to the hatchback-like SX4 replacement. Not much is known about the new Grand Vitara, but a new satellite navigation system is expected to debut in the SUV and eventually spread into other Suzuki models.
Suzuki will start selling the new SX4 and Grand Vitara in the United States this fall, and these two new crossovers should be a welcome addition to the company's diminutive U.S. dealer network that has been starved of product since the early 2000s. Automotive News adds a little gloom to this topic by pointing out that, after the introduction of the new SX4 and Grand Vitara this fall, American Suzuki has no new products planned through the 2015 model year. Suzuki dealers in Europe are more fortunate, as a refreshed version of the Jimny (formerly known as the Samurai here in the States) and an all-new Alto will both be joining the lineup.