“Low-cost cars will become important within all emerging markets.” .....HILITES OF TODAY'S WORLD AUTO INDUSTRY REPORT.... .....Volkswagen AG is kicking its race to become the world's largest auto maker into a higher gear, hooking up in a strategic alliance with Suzuki Motor Corp. in the latest in a series of deals that are transforming the global auto industry.....   Volkswagen to attack the low-cost car market and compete with Tata Motors Ltd. in India, which has introduced the $2,500 (U.S.) Nano in that country.   Cars costing less than $5,000 will boast the highest growth rates  during the next 10 years... PVAF shares with you knowledge in all aspects of life...because life is a holistic affair...every one thing affects every one other things....all of Nature's and Human's creations is ordained to co-exist...harmoniously to survive...or ultimately perish when one lives at another's cost.... Today's news story is about how automakers world wide have learned "When the economy was growing all engineers could be self-centered, selfish and say ours is the best [part]...We don't live in that world any more.” .... ....and as you read today's very informative auto report on the next web page... you will realize how the auto industry worldwide has gotten smarter after the 2008 worldwide financial and industrial meltdown....please click on the next line to read this knowledge sharing.....

.....AND NOW SURPRISE YOURSELF WITH TODAY'S WORLD WIDE AUTO INDUSTRY REPORT WHICH INDICATE THAT FINALLY THE AUTO INDUSTRY HAS GOT IT..... ......STUPID ITS THE CLIMATE CHANGE CHALLENGE... Volkswagen REUTERS VW deal with Suzuki takes aim at India German car maker to go after Tata's low-cost niche market (From: Canadian Globe and Mail: Wednesday, December 09, 2009: Greg Keenan, Auto Industry Reporter: With files from Bloomberg News ) Volkswagen AG is kicking its race to become the world's largest auto maker into a higher gear, hooking up in a strategic alliance with Suzuki Motor Corp. in the latest in a series of deals that are transforming the global auto industry. The two auto makers will exchange shares in each other – Volkswagen taking a 19.9-per-cent stake in Japan-based Suzuki – in a deal that links a European powerhouse with the biggest auto maker in India. Volkswagen is a leader in South America and China but has been weak in India, one of the world's key growing markets. The companies will also share technology to meet fast-growing demand for low-cost, environmentally friendly cars. br /> “The auto industry is going through a fundamental transition,” Martin Winterkorn, chairman of the management board of Volkswagen, told a news conference in Tokyo Wednesday. “Alliances and co-operation are at the top of the agenda and they are indispensable.” The deal comes as the world's auto makers emerge from a devastating global sales slump that has shredded balance sheets and profits and reshaped the business. Fiat SpA took a 20-per-cent stake in Chrysler as it emerged from Chapter 11 bankruptcy protection in the United States and is now integrating its own auto business with that of the No. 3 Detroit company. PSA Peugeot Citroën of France and Mitsubishi Motors Corp. of Japan said last week they are examining deepening an existing relationship in what would be the second Franco-Japanese marriage since Renault SA merged with Nissan Motor Co. Ltd. Chinese auto makers are negotiating to buy Saab and Volvo Cars of Sweden, assets being sold by General Motors Co. and Ford Motor Co. respectively. Volkswagen has already bought 50 per cent of Porsche Automobil Holding SE. The $2.5-billion (U.S.) deal with Suzuki means Volkswagen is striking while some of its key rivals for world domination are preoccupied in dealing with the fallout from the global crisis. Toyota Motor Corp., the world's largest auto maker, posted its first-ever financial loss and is in the midst of determining how to deal with overcapacity in North America, where it has a brand new plant in Mississippi that is sitting empty. GM is struggling to emerge successfully from Chapter 11 bankruptcy protection and sort out the mess in its European business Adam Opel GmbH. “In 2018 we want to become No. 1 in the world,” Mr. Winterkorn declared at the news conference, noting that co-operation with Suzuki will help achieve that goal. BBut the deal is about more than production volume, Osamu Suzuki, the 80-year-old chairman of the company that bears his family name told the same news conference. Quality and cost are also crucial, Mr. Suzuki said, noting that sharing of parts and components reduces cost. “When the economy was growing all engineers could be self-entred, selfish and say ours is the best [part],” he said. “We don't live in that world any more.” Higher production volume drives costs down, however, and that is a factor behind many of the auto industry alliances as they try to reduce the astronomical costs of making internal combustion engines more efficient, producing hybrid-electric vehicles, electric cars and trucks and fuel-cell power plants. The alliance marries a small player with industry-leading car capability in Suzuki with a larger partner in Volkswagen, whose environmental technologies are well advanced. Volkswagen is regarded as one of the leading makers of diesel engines, which are more fuel efficient than gasoline engines, and is developing hybrid vehicles. It will make that technology available to Suzuki. Volkswagen's Up! Lite hybrid small car that also has a diesel engine was unveiled at the Los Angeles Auto Show last month and travels 49 kilometres on every litre of gas. Volkswagen is also working on fuel cells, which are seen by many as a long-term solution to weaning cars off gasoline. The company provided a fleet of fuel-cell powered cars to Chinese officials during the Beijing Olympics in the summer of 2008. Suzuki sells about 2.3 million vehicles a year compared with more than six million for Volkswagen and its stable of brands that includes Skoda and Seat in Europe, luxury brands Audi, Bentley and Lamborghini and truck maker Scania. It will allow Volkswagen to attack the low-cost car market and compete with Tata Motors Ltd. in India, which has introduced the $2,500 (U.S.) Nano in that country. Cars costing less than $5,000 will boast the highest growth rates during the next 10 years, said Ferdinand Dudenhoeffer, who heads the Centre for Automotive Research at the University of Duisburg-Essen in Germany. “Volkswagen is not just aiming at India,” Prof. Dudenhoeffer said. “Low-cost cars will become important within all emerging markets.” Sales in India should grow 58 per cent between now and 2014 to 2.6 million vehicles a year, auto consulting firm J.D. Power and Associates forecasts. ““Volkswagen is like a department store carrying everything from luxury brands to truck makers,” Koji Endo, a long-time industry analyst in Japan said. “What they're missing is any presence in India and Southeast Asia. The point of partnering with Suzuki is to grab India.” PLEASE KINDLY Share THIS WORLD ECONOMY KNOWLEDGE with friends Other ways of sharing:br /> Tweet this on TwitterShare on FacebookAdd to DeliciousSubmit post to Digg.com Seed this post at Newsvine

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