Effective January 15, 2010, Volkswagen acquired 19.89% of the shares of Suzuki Motor Corporation, Hamamatsu, Japan, for €1.7 billion. Following the exercise of outstanding convertible bonds by other investors, Volkswagen’s interest in Suzuki fell to 19.37%. After acquiring additional shares, Volkswagen increased its interest again to 19.89% as of June 30, 2010.

Due to the economic cooperation agreed in the master agreement, Suzuki was classified as an associate until September 2011. The shares were measured using the equity method. The precise allocation of the purchase price to the assets and liabilities of the Suzuki Motor Corporation was completed in the current fiscal year. No significant adjustment to the figures allocated in the previous year was required.

Following the notification by Suzuki dated September 13, 2011 that it intends to terminate its cooperation with Volkswagen, and because it is not clear at the present time whether any cooperation will be reestablished, Volkswagen is no longer in a position until further notice to exercise significant influence over Suzuki. Equity-method accounting was discontinued as of this date and the difference between the equity-accounted carrying amount and the fair value of the shares was recognized as an expense from associates as of the date of the change in the accounting policy. Including the reclassification to profit or loss of amounts previously recognized directly in equity amounting to €430 million, this results in an expense from discontinuation of the equity method amounting to €263 million. Since that date, the interest in Suzuki has been presented in other investees and measured at fair value directly in equity.

The acquisition of the majority stake in MAN SE means that the MAN Group’s interest of 25% plus one share in Chinese truckmaker Sinotruk Ltd. is attributable to Volkswagen. The quoted market value of this investment was €298 million at the end of the reporting period. Due to local capital market rules governing the publication of financial information of this investee, the consolidated income statement does not include any share of the investee’s results in fiscal year 2011. MAN’ s 30% interest in Ferrostaal AG, Essen, is also attributable to Volkswagen. There was already an intention to sell the investment in the near term at the time it was acquired, so the shares were classified as held for sale and not accounted for using the equity method. The investment has been written down in full. On November 28, 2011, MAN agreed to the retransfer to MAN of the 70% interest in Ferrostaal held by the International Petroleum Investment Company ( IPIC ), Abu Dhabi, and to the repurchase of these shares by MAN from IPIC under the terms of a settlement agreed with IPIC. Under the settlement agreement, MAN is required to pay €350 million. IPIC had acquired a share package amounting to a 70% interest in Ferrostaal at the beginning of 2009. At the same time, MAN entered into an agreement with the MPC Group, Hamburg, under which the MPC Group will acquire 100% of the shares of Ferrostaal from MAN immediately following completion of the settlement agreed with IPIC. The transaction depends on clearance by the responsible antitrust authorities. The MPC Group will purchase Ferrostaal from MAN for up to €160 million. The settlement agreement did not result in any earnings effects for Volkswagen because the earnings effects attributable to the transaction had already been included in purchase price allocation for the MAN Group as a contingent liability.

The following carrying amounts are attributable to the Volkswagen Group from its proportionate interest in Sinotruk (previous year: MAN and Suzuki):







€ million






Fiscal year 2011: Amounts refer to the June 30, 2011 reporting date.


No profit or loss recognized in Volkswagen’s consolidated financial statements for fiscal year 2011.
















Profit/loss for the period2





On December 31, 2011, MAN and Rheinmetall AG, Düsseldorf, combined their production capacities for wheeled military vehicles in Rheinmetall MAN Military Vehicles GmbH, Munich, which had been formed in 2010. Volkswagen Group holds a 49% stake in this company via MAN Truck & Bus AG. The equity interest in this company is accounted for using the equity method and is contained in the share of profits and losses of equity-accounted investments in the amount of €132 million as of December 31, 2011. The equity method is applied with a three-month delay.


The following carrying amounts are attributable ratably to the Volkswagen Group from its proportionate interest in joint ventures (primarily FAW -Volkswagen Automotive Company (40%), Global Mobility Holding (50%), Porsche Zwischenholding GmbH (49.9%) and Shanghai-Volkswagen Automotive Company (50%)):







€ million





Noncurrent assets





Current assets





Noncurrent liabilities





Current liabilities















The Volkswagen Group holds a 50% indirect interest in the joint venture LeasePlan Corporation N.V., Amsterdam, the Netherlands, via its 50% stake in the joint venture Global Mobility Holding B.V., Amsterdam, the Netherlands. Volkswagen agreed with Fleet Investments B.V., Amsterdam, the Netherlands, an investment company belonging to the von Metzler family, that Fleet Investments would become the new co-investor in Global Mobility Holding in 2010 for an initial period of two years. The agreement was prolonged by a further two years in fiscal year 2011. The previous co-investors were instructed by Volkswagen AG to transfer their shares to Fleet Investments B.V. on February 1, 2010 for the purchase price of €1.4 billion. Volkswagen AG granted the new co-investor a put option on its shares. If this option is exercised, Volkswagen must pay the original purchase price plus accumulated pro rata preferred dividends or the higher fair value. The put option is accounted for at fair value.

In addition, Volkswagen has pledged claims under certificates of deposit with Bankhaus Metzler in the amount of €1.4 billion to secure a loan granted to Fleet Investments B.V. by Bankhaus Metzler. This pledge does not increase the Volkswagen Group’s risk arising from the above-mentioned short position.

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