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 |  Oct 14 2011, 8:00 PM

 

Amid the ongoing dispute between Suzuki Motor Co and Volkswagen AG, Suzuki has written to VW, alleging various breaches of contract and asking VW to address the situation.

However, despite claiming numerous cases of contract infringement, during a press statement, Suzuki failed to highlight exactly what those specific breaches were.

The origins of the quarrel between the two automakers date back to 2009, when VW acquired a 19.9 percent stake in Suzuki, while the Suzuki purchased a 1.49 percent share in the German giant.

Sukuki’s fiery chairman, Osaku Suzuki, has maintained all along, that from his company’s standpoint, the alliance was meant to facilitate Suzuki’s access to VW technologies, though in a recent press statement he said, “I remain disappointed that we have not received what we were promised. If VW will not allow access, it must return Suzuki’s shares.”

VW on the other hand, claims Suzuki also violated terms of the contract by failing to disclose that it had done a deal with FIAT to supply engines, yet Suzuki maintains that this allegation “significantly disparaged Suzuki’s honor” and continues to seek an apology and retraction from the Wolfsburg company.

With both parties at loggerheads, it seems that they will each have to resort to legality processes, in order to have any chance of resolving the situation, though given how hostile said situation has become, it is very unlikely either company will be interested in salvaging what’s left of the alliance.

According to an IHS Automotive industry analyst in Tokyo, Masatoshi Nishimoto, ”if the partnership with VW is delaying [Suzuki's] development of new technology and cars, they need to end it as soon as and as calmly as possible.”

[Source: Bloomberg]