VW/Suzuki: small is beautiful

Alexander Smith Volkswagen’s $2.5bn investment in Japanese rival Suzuki is a small step in its ambition to be the world’s biggest carmaker. But it is a smart move for both sides. And the strategic benefits for the German autos group are particularly attractive. Suzuki sold 1.15 million vehicles in the first half of 2009. A full takeover by VW would take the enlarged company straight to the top of the pack, with combined sales of 4.4 million units, putting it miles ahead of Toyota’s 3.5 million...