Contract manufacturing a possibility for Maruti
As the market leader in passenger cars is facing a situation where it can sell almost all of it what it can produce and hence is facing production constraints, the company has recently said that contract manufacturing with Volkswagen is very much possible as it will partly solve the problem for the company.
While the option of contract manufacturing comes under a global synergy programme between its parent, Suzuki Motor Corp, and the German auto major, it is to be mentioned here that Volkswagen (VW) had last year picked up 19.9 per cent stake in Suzuki Motor Corp (SMC) for $2.5 billion.
Maruti Suzuki India Managing Director and CEO Shinzo Nakanishi said that there is very much a possibility for the company to work on an original equipment deal with Volkswagen which will be similar to what the company does for Nissan in Europe.
It may be noted here that the officials of VW and SMC are currently in discussions for a roadmap on their global synergy programme.
Nissan Motor Co Executive Vice-President Collin Dodge has said few months back that the company may continue its agreement with Maruti even after the deal with Volkswagen.