Tokyo - Japanese automaker Suzuki Motor Corp said Wednesday it had signed a capital tie-up deal with Volkswagen AG. Under the agreement, Volkswagen plans to buy a 19.9-per-cent stake in the Japanese automaker.
Suzuki Motor Corp, Japan's fourth biggest automaker, also planned to invest about 50 billion yen (569 million dollars) to buy shares in Volkswagen, chairman Osamu Suzuki told a news conference.
In early November, Suzuki said its net income plummeted by 63.4 per cent in the first half of the fiscal year due to weak sales.
The company said its net income stood at 12.5 billion yen (142.2 million dollars) for the April-September period, while operating profit plunged 47.5 per cent to 31.8 billion yen.
Revenue also dropped 31.3 per cent to 1.18 trillion yen due to the yen's rise and drops in sales at home and abroad, the company said.
But the company upgraded its annual forecasts, projecting a net profit of 15 billion yen, up from the five billion yen it forecast in May.
Operating profit is estimated at 40 billion yen, up from 10 billion yen. Revenue is forecast at 2.3 trillion yen, unchanged from the earlier projection.
