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New investor allows Suzuki to fend off VW

After years of legal wrangling, the long-soured partnership between Volkswagen and Suzuki looks finally to be coming out of arbitration, according to Bloomberg. As a sign of the Japanese brand's improved fortunes, hedge fund Third Point LLC recently bought an undisclosed stake in the company. The investor reported seeing a major opportunity in the successful Maruti Suzuki business in India. As an investment, the only major problem that Third Point found with Suzuki was its legal battle with VW. "The company's greatest asset is its low-cost manufacturing process for vehicles for the emerging market consumer," the fund said in a letter, according to Bloomberg. Third Point reportedly also wants a seat on Suzuki's board, despite being a minority shareholder. The alliance between Suzuki and VW goes back to late 2009. In the deal, the Japanese brand was meant to get access to cutting-edge tech, and the German firm got a helping hand towards better establishing itself in India and Southeast Asia. Things didn't go as planned, though. Less than two years later, Suzuki's boss publicly derided the deal. Eventually, the allegations started going back and forth, and the two have been working out a way to untangle practically ever since. Among the biggest issue has been how to get back the 19.9 percent stake that VW purchased. According to Bloomberg, the arbitration is now technically over. With the divorce nearly final, the two sides are just waiting on a decision on how to split things up. Suzuki may even just buy VW's stake to get the shares back.

Indian diamond merchant gives 600 new cars to his staff

NEW DELHI — India's Prime Minister Narendra Modi helped a diamond merchant present hundreds of new cars as gifts to his employees on Thursday. Six hundred employees of Hari Krishna Exporters, a diamond trading company run by Savji Dholakia, received cars made by Indian manufacturer Maruti Suzuki, while around 1,000 more staffers were offered gifts of cash deposits and apartments in a huge outdoor ceremony in Surat, Gujarat. Indians often give each other gifts in the run-up to Diwali, a major Hindu festival celebrating the triumph of good over evil that this year falls on Nov. 7. Modi addressed the prize-giving in his home state of Gujarat via video link, as well as presenting some of the employees with car keys in the capital New Delhi. Dholakia is famous across India for giving lavish gifts to his employees at Diwali, including hundreds of apartments in 2016's ceremony. The showroom value of the 600 cars would be more than $2 million. Gift-giving in the latter part of the year when several Hindu festivals are celebrated provides a major boost to India's economy. The gifts were part of a program targeting staff who have given loyal service to the diamond trader. "The aim of this program was to reward employees' loyalty and dedication towards the company," Dholakia said in a Facebook post.Reporting by Alasdair Pal Related Video: Image Credit: Reuters Auto News Weird Car News Suzuki

Suzuki will road-test EVs in India, start production with Toyota in 2020

NEW DELHI — Japan's Suzuki Motor Corp will start testing prototypes of electric vehicles in India by October, its chairman said on Friday. "We will start road-running tests using a fleet of 50 EV prototype vehicles in India from next month in order to develop safe and easy-to-use EVs for Indian customers," Osamu Suzuki said at the Global Mobility Summit at New Delhi. The company would then launch EVs in India around 2020 in cooperation with Toyota, he added. However, Suzuki said that for EVs to become popular in India, there had to be well-developed charging infrastructure. "In this regard, we look forward to proactive leadership from the Indian government," he said. The government of Prime Minister Narendra Modi has a plan to electrify all new vehicles by 2030, a target many experts call ambitious. EVs are expensive due to the high cost of batteries which are still not manufactured in India, and carmakers say a lack of charging stations could make the proposition unviable. Suzuki, parent of India's top-selling automaker, Maruti Suzuki, would start production of lithium-ion batteries for automobiles at its plant in western India from 2020, Suzuki said. India is one of the world's fastest-growing car markets, but EV sales are negligible compared with millions of petrol and diesel cars sold every year. Suzuki said to meet India's environmental challenges, the government would have to look at hybrid and CNG (compressed natural gas) vehicles also.Related Video: