Volkswagen Claims Suzuki Broke Partnership Rules by Doing Business With Fiat

Colum Wood
by Colum Wood
volkswagen claims suzuki broke partnership rules by doing business with fiat

With the Volkswagen/ Suzuki tie-up all but officially over, the latest move by Volkswagen is sure to end it. After its first full review of the “partnership” Volkswagen has announced it is, “serving notice of an infringement by Suzuki of the cooperation agreement.”

The reason for the notice is a result of Suzuki’s decision to purchase diesel engines from VW rival Fiat, which, claims the German automaker, “contradicts the terms of the cooperation agreement.”

Volkswagen has said it has offered to discuss the matter with Suzuki but said the filing was necessary, giving Suzuki a period of several weeks to “remedy the infringement.”

Back in December of 2009 the two automakers announced the tie-up, which was supposed to see Suzuki gain technology from VW, in return for insight and cooperation by Suzuki into emerging markets like India. VW also purchased a 19.9 percent stake in the Japanese automaker.

Perhaps adding insult to injury, in a release by Volkswagen, the German automaker says the “partnership” is not over yet, referring to Suzuki as, “an attractive investment.” That’s not likely to sit well with Suzuki execs. ( Didn’t we say you should expect divorce papers soon?)

Join the conversation