Volkswagen buys 20 per cent of Suzuki

Only a week after sealing a deal to take control of Porsche, Volkswagen's insatiable appetite for acquisitions continues, this time buying one fifth of Japanese automaker Suzuki.

According to an official statement: "Volkswagen AG and Suzuki Motor Corporation have reached a common understanding to establish a comprehensive partnership."

In order to allow a " smooth development" of the new relationship, Volkswagen AG will purchase 19.9 per cent of Suzuki's issued shares. The deal is expected to be complete in January 2010, and Suzuki says it will reinvest half of this amount back in Volkswagen, bringing the two companies into a closer orbit.

The purpose of the new relationship? Both companies issued statements that centred on 'small cars' and 'carbon footprints' but Suzuki's motorcycle operations will no doubt be getting a visit from Volkswagen's top brass in the next few months.

There has long been a desire within Volkswagen to develop two-wheeled vehicles, and there is scope for the German company to take on BMW Motorrad with high end motorcycles, both on and offroad models.

The first sign of this two-wheeled curiosity was when Volkswagen developed its own trike in 2006, the GX-3 concept, which hinted at a desire by the car maker to move into the motorcycle arena.

A little over a year ago Volkswagen was rumoured to be in talks with KTM to develop two-wheeled models, after both companies collaborated on the KTM X-Bow sportscar.

While neither Volkswagen nor Suzuki has confirmed anything about motorcycles, watch this space, because the Volkswagen GSX-R1000 with a twin-clutch automatic gearbox could be on the horizon…