August 2019
Case
HBS Case Collection

Volkswagen and Suzuki (A): A Match Made in Heaven?

By: Ranjay Gulati and Saloni Chaturvedi

Format:Print
| Language:English
| Pages:21

Abstract

The alliance between Volkswagen and Suzuki in 2009 was expected to help Volkswagen become the world’s largest carmaker and Suzuki gain expertise in fuel-efficient technologies. In addition, each promised to help the other in the two largest emerging markets. While Volkswagen dominated China, Suzuki was the leader in India. The synergies were obvious and some had even described this as the perfect match. It all began with great celebration and announcements of the multitude of benefits that each would obtain from the other. However, the alliance started to unravel in 2010, with both companies expressing disappointment with each other. The private disappointments gave way to public threats. Eventually, Suzuki filed a petition for the dissolution of the alliance in 2011. What were the events that led to this separation, despite the promise of a mutually beneficial partnership? What could the two companies have done differently? The case discusses the formation of the alliance and the events that followed to help students understand the important elements of successful alliances.