Honda India has revealed that the VW-Suzuki partnership is a threat for the company as it pressurizes them to launch competitively priced cars while maintaining its brand value. Honda says that many such alliances are not good for them as these companies have cost advantages when it comes to R & D, sharing platforms, etc.
Honda Motor India president and CEO, Takashi Nagai to Go Auto-
This (VW-Suzuki partnership) is very worrying for us
In Europe the Toyota/Peugeot/Citroen trio have successfully managed the Aygo/107/C1 triplets. Likewise the Nissan/Renault/Samsung/Dacia products have been successfully sold alongside each other in many markets. In North America too the Honda Accord has to battle it out with the Korean siblings - Hyundai i45 & Kia Magentis/Optima. Even the Hyundai ix35 & Kia SL Sportage are a threat to the CR-V.
But the biggest threat has to be VW-Suzuki says Honda. In the ASEAN Region, Suzuki has a monopoly in the small car market especially in India thanks to its skill to manufacture low cost products. This skill coupled with VW’s German engineering, quality & safety could be a nightmare for companies like Honda and even Hyundai.
But at the end Honda says that it is a smart manufacturer because it has learnt how to launch well priced products while maintaining their brand value. Honda has high hopes with its new small car which it showcased at the 2010 Delhi Auto Expo. Honda hopes that it will be able to garner a good market share in the Asia-Pacific region with this new baby Honda.
It also says that will continue to further strengthen the Honda brand instead of making alliances or thinking of alternative brands.
Source - Go Auto