sreekanth
RC Bhargava, Chairman, Maruti Suzuki spoke to ET NOW on whether the Suzuki and Volkswagen deal would impact the
Indian operations
Quite some room for this deal to go on but on an initial take I was just reading some of your reactions as well wherein you have said that the deal would add synergies to both the companies, how would it essentially impact Maruti Suzuki India as a company?
Well, that is not something which we know as yet because both companies have had to have to decide on the strategies for different markets as they go along. They have to have more detailed discussions and work out the programme. So that is not available at this point.
Sure, but in terms of you having said that the deal will add synergies to both the companies, there will be mutual cooperation.
That is the reason why they have joined together because Suzuki and Volkswagen see synergies in this partnership because they have a lot of complementarily in their product portfolios, in their global operations, in their technology availability and such things, so the synergy is between Suzuki and Volkswagen.
Right but there is a bit of a competition element there is well. We were just reading out a statement which said that both the companies will be competing and cooperating, could you elaborate on that a bit, what does it mean in terms of their individual existence in the region?
Okay, both have decided that they will maintain their brand names, they will maintain their marketing channels and therefore if you both have their brand names and they have their marketing channels, they are bound to be a certain amount of competition between them and there is no harm in a little competition. It always helps to keep everybody on their toes.
Right but with this 20% stake with which Volkswagen really becomes a largest shareholder in Suzuki Motors, does that mean that we could see any management changes taking place, either its Suzuki Motors's level or even perhaps in Maruti Suzuki?
I do not see any impact on Maruti Suzuki out of this because the company here is 54% Suzuki and the Suzuki management decides on what the Board and other management policies here are. So unless there is some change in Japan which we do not know about and which seems to be unlikely because when General Motors joined Suzuki with the 20% shareholder, they had one or two seats on the Board I am not sure and I assume that some similar arrangements will be worked out now. I do not think there is any question of Volkswagen taking over Suzuki's management.
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