Suzuki is turning to legal arbiters in the UK in an attempt to force Volkswagen to return its 19.9-percent stake in the Japanese automaker, according to Automotive News Europe. VW purchased the sizable slice of Suzuki in 2009 for around $2.1 billion when the two embarked on a corporate partnership together, but the relationship soon hit trouble. Suzuki accused Volkswagen of failing to deliver on promises of shared technology, while the German manufacturer reportedly took issue with Suzuki opting
The partnership beween Volkswagen and Suzuki is more than two years old, yet in that time, more acrimony and court proceedings have been created than jointly developed products – not hard to do when that product number is zero. Continent-crossing accusations have included Suzuki being upset at how VW has characterized the relationship and that VW hasn't shared its technology, while the German automaker has been miffed at Suzuki buying diesel engines from Fiat.
Last month on The Young and the Restless Volkswagen-Suzuki Partnership, Osamu Suzuki was publicly declaring his angst with the "ball-and-chain" union, proclaiming it needed to end and serving legal papers. Volkswagen, meanwhile, was saying little other than that it wanted to speak to its partner privately and was not ready for a divorce, in spite of previously serving its own legal papers.
We don't know how you say "Throw down the gauntlet" in Japanese, but Suzuki CEO Osamu Suzuki has apparently gone and done it. Claiming that his company's relationship with Volkswagen has the potential to become a "ball and chain" if it continues it current course, Suzuki apparently sees so little hope of remedy that he has suggested an amicable separation.
You know the script – you meet somebody new and all cylinders seem to be firing in perfect harmony. You decide to see more of each other, consider moving your relationship to the so-called next level. You exchange keys. And that's when things start to go sour.
In 2010, Volkswagen purchased 19.9 percent of Suzuki, and the two have been working together in the form of a self-described comprehensive partnership. Apparently, "working together" means different things to the two automakers, however, because neither side is thrilled with the Japanese-German automotive tie-up. So much so, that Suzuki may be looking to take its talents to Italy.
Volkswagen and Suzuki may be headed back to the drawing board to re-outline the nature of the two automakers' partnership. Both companies have expressed their frustrations with the way that the German manufacturer's 20-percent stake in its Japanese associate has worked out thus far, with VW taking to the press to say that Suzuki isn't willing to reciprocate technology and Suzuki claiming that Volkswagen is attempting to poach its autonomy. So far, the partnership has sounded like a match made in
Volkswagen currently holds a 19.9-percent stake in Suzuki, making the German automaker the largest shareholder in the much smaller Japanese automaker. Will VW try to increase its stake in Suzuki in the future? Not if it's up to Suzuki CEO Osamu Suzuki.
According to Reuters, Suzuki plans on ending joint development programs with General Motors next month - the two had been partnering on innovative hybrid and fuel-cell technologies. The news follows on the heels of last month's announcement that that Suzuki and Volkswagen had tied the knot (as part of that agreement, VW bought 19.9 percent of Suzuki and effectively became the automakers biggest shareholder - a position formerly held by GM). As the theory goes, it soon become clear that working
Volkswagen and Suzuki won't waste anytime at all in getting started on their assorted joint projects. Well, unless you count the holidays, which we'll let slide. At the launch of the new Suzuki Alto, CEO Osama Suzuki told reporters that the newly tied-at-the-hip automakers will begin "Actual, detailed execution – with our people going there and their people coming here... after January."
As you can see from the image above depicting Osamu Suzuki, chairman and CEO of Suzuki Motor Corp. and Martin Winterkorn, his counterpart at Volkswagen AG, the two auto companies have agreed to link arms. Volkswagen has properly announced that it has "reached a common understanding to establish a close longterm strategic partnership" with Suzuki Motor Corporation. The union means VW will buy 19.9% of Suzuki, then Suzuki will spend half the money they just received from Volkswagen reciprocating b
Those constant rumors that Volkswagen may acquire a 10-percent stake in Suzuki all have one thing in common: they all emanate from the Volkswagen side of the coin. Naturally, no such deal can be completely one-sided, and whenever given the opportunity Suzuki has consistently denied that there's any truth to the speculation.