Suzuki Confident Of Ending Volkswagen Partnership Woes
Volkswagen has wrapped up its takeover of iconic sporting brand Porsche, but things are not so rosy for the VW-Suzuki partnership signed in 2009. Speaking in London this week, Suzuki vice president Yasuhito Harayama said that the agreement between
Volkswagen has wrapped up its takeover of iconic sporting brand Porsche, but things are not so rosy for the VW-Suzuki partnership signed in 2009.
Speaking in London this week, Suzuki vice president Yasuhito Harayama said that the agreement between the companies has been terminated, "thus Volkswagen does not have the legitimacy to keep holding Suzuki shares".
He said that the two companies are now in arbitration, and Suzuki is confident of a positive outcome. Hearings are expected to be heard in the coming year.
The news comes after Suzuki declared an end to the partnership, claiming that Volkswagen had not provided technologies promised as part of the agreement.
The agreement would have seen Volkswagen benefit from Suzuki's strength in the Indian market, and its expertise with sub one-litre cars.
In a statement released last year, Volkswagen said that Suzuki broke the partnership by turning to Volkswagen's European rival Fiat for supply of a 1.6 litre diesel engine in the SX4.
In 2010, Suzuki CEO Osamu Suzuki said his company would likely refuse any attempt by Volkswagen to increase its share in the Japanese carmaker beyond the 19.9 percent it paid around AU$2.7 billion for.
In November, the carmaker said it would use arbitration to force Volkswagen to sell back its stake, after Suzuki reportedly offered to buy the shares back at the current market rate - believed to be around $2.4 billion.
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