VW Vows to Keep Suzuki Shares as Partnership Turns Ugly
A public disagreement between Volkswagen and Suzuki in early September left the Japanese automaker wanting to end its partnership, but that might not happen. In a news release Monday, the company said it “will retain its stake in Suzuki Motor Corp. unchanged.”
Suzuki requested its shares be returned in light of what representatives say are numerous violations in the 2009 agreement to develop green cars. Two years ago the companies partnered, agreeing to share VW technology with Suzuki in exchange for insight into emerging markets like India. The agreement disintegrated since then, with both companies citing violations by the other.
Suzuki claims Volkswagen violated the agreement in developing hybrids and electric cars several times thus far. On the other end of the argument, Suzuki also bought diesel engines from VW rival Fiat, something Volkswagen said was contradictory to their agreement.
Volkswagen made an announcement about the issue early last month, leading to a public dispute between then two companies. The fight left Suzuki insisting the companies part ways.
Suzuki owns just under a 1.5 percent stake in Volkswagen.
[Source: The Detroit News]
Luke is an energetic automotive journalist who spends his time covering industry news and crawling the internet for the latest breaking story. When he isn't in the office, Luke can be found obsessively browsing used car listings, drinking scotch at his favorite bar and dreaming of what to drive next, though the list grows a lot faster than his bank account. He's always on <A title="@lukevandezande on Twitter" href="http://twitter.com/lukevandezande">Twitter</A> looking for a good car conversation. Find Luke on <A title="@lukevandezande on Twitter" href="http://twitter.com/lukevandezande">Twitter</A> and <A title="Luke on Google+" href="http://plus.google.com/112531385961538774338?rel=author">Google+</A>.
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