Volkswagen and the Suzuki Motor Corporation have signed a framework agreement to establish a close long-term strategic partnership.

The companies plan a joint approach to the growing worldwide demand for more environmentally friendly vehicles.

Both will establish a cooperative relationship while respecting each other’s independence as a stand-alone entity.

To support a smooth development of this relationship, Volkswagen will purchase 19.9% of Suzuki’s issued shares. The closing of the transaction is subject to approval of the relevant authorities and is expected in January 2010.

Suzuki intends to invest up to one half of the amount received from Volkswagen into shares of Volkswagen.