Volkswagen to buy one fifth of Suzuki

WOLFSBURG, Germany, Dec. 9 (UPI) -- German automaker Volkswagen said Wednesday it would pay $2.5 billion for a 19.9 percent stake in Japan's Suzuki Motor Corp.

The move follows an October agreement for Volkswagen to purchase 49.9 percent of Porsche for about $6 billion and gives the German company an instant vantage point to approach markets of India and southeast Asia, The New York Times reported Wednesday.

Suzuki owns 54 percent of Maruti Suzuki, a partnership with the Indian company that could also allow Volkswagen to approach the European market with small car technology developed in Japan and India.

Volkswagen also said it's goal was to climb to the top in global sales.

"In eight to 10 years from now, we want to become No. 1 in the world. I believe we will be able to accelerate that with the cooperation of Suzuki," Volkswagen Chief Executive Officer Martin Winterkorn said.

"In turn, Suzuki can benefit from our experience with efficient and environmentally friendly vehicles, Winterkorn told reporters.

The deal is certain to receive close scrutiny from regulators, but is expected to close in January, Volkswagen said.

Shares of Suzuki and Volkswagen rose with the announcement Wednesday, up 3.5 percent and 2.3 percent, respectively.