Volkswagen will buy a 19.9% stake in Suzuki Motor Corp for US$2.5bil, according to a Reuters report, while the Japanese automaker will invest up to one half of the amount received from the German automaker into shares of Volkswagen.

The report added that analysts said the move could benefit Suzuki by giving it cash and a partner to develop clean-car technology and giving VW a minicar platform and a foothold in emerging market such as India.

Volkswagen has said it wants to become the world's No.1 automaker by 2018, a goal it would reach with relative ease now that Suzuki is in the fold. VW sold 3.265mil vehicles and Suzuki 1.15mil in the first half of 2009, and combined, the number surpasses Toyota's 3.564mil.