The saga between Volkswagen and Suzuki is nothing short of a never-ending story. As recently as this past Friday, Suzuki was getting ready to take legal action to dissolve the two companies’ partnership, but Volkswagen now says it doesn’t plan on letting go of its stake in the Japanese automaker.
VW took a 19.9-percent stake in Suzuki back in late 2009. The agreement set by the two automakers was that Suzuki would help the VW break into developing market – where Maruti Suzuki has a strong foothold – while the German juggernaut would lend its alternative fuel (hybrids, diesel) powertrains and transmissions technology to Suzuki. Apart from Volkswagen’s becoming the largest shareholder in Suzuki and months of bickering, little has come of the deal.
Recently, Volkswagen has called Suzuki out for buying diesel engines from Fiat, which it feels reneges on the original deal struck between the two companies. Suzuki instead believes VW is tarnishing the brand’s name, and has gone as far as to seek legal counsel, alleging since it was never granted access to VW’s technology, the German automaker must relinquish its stake in Suzuki.
Volkswagen has yet to comment on the situation, with the exception of telling Reuters today that “Volkswagen will not be making any changes to its shareholding in Suzuki Motor Corp, [and that] the discussion between both parties will be exclusively conducted internally.”
Reuters reports that not only were both VW and Suzuki’s stock prices down today, but that Suzuki may take more drastic measures if Volkswagen continues to ignore its request to dissolve the partnership.