For the past several months, rumours and various reports have been talking about the deteriorating relationship between Suzuki and Volkswagen. The dysfunctional alliance was officially dissolved today, Suzuki having terminated the partnership via a press release.
The Japanese automaker doesn’t like the way VW tries to actively influence its affairs; Suzuki wants to make independent decisions to maintain its profitable position in the Japanese and Indian markets.
The German manufacturer was looking to put Suzuki’s fame to good use to increase sales of its compact cars in a bid to become the world’s Number 1 automaker.
Volkswagen currently holds a 19.9% stake in Suzuki, who was in turn given a small stake in the German giant when the deal was signed back in 2009. Both companies will have to agree to the terms of this break-up and the future of their complicated story.
Over the weekend Volkswagen publicly denounced its partner, claiming Suzuki had violated the terms of their agreement by supplying diesel engines to another player (Fiat). VW had given Suzuki “several weeks” to set things straight, considering it a “regrettable but necessary step”.
Despite everything, the German automaker still believes Suzuki as an “attractive investment”. Unfortunately, the feeling doesn’t appear to be mutual.
The Japanese automaker doesn’t like the way VW tries to actively influence its affairs; Suzuki wants to make independent decisions to maintain its profitable position in the Japanese and Indian markets.
The German manufacturer was looking to put Suzuki’s fame to good use to increase sales of its compact cars in a bid to become the world’s Number 1 automaker.
Volkswagen currently holds a 19.9% stake in Suzuki, who was in turn given a small stake in the German giant when the deal was signed back in 2009. Both companies will have to agree to the terms of this break-up and the future of their complicated story.
Over the weekend Volkswagen publicly denounced its partner, claiming Suzuki had violated the terms of their agreement by supplying diesel engines to another player (Fiat). VW had given Suzuki “several weeks” to set things straight, considering it a “regrettable but necessary step”.
Despite everything, the German automaker still believes Suzuki as an “attractive investment”. Unfortunately, the feeling doesn’t appear to be mutual.