Tokyo, Japan (AHN) – Suzuki Motor Corp. on Friday accused Volkswagen of breaching a contract to make energy-efficient cars.
The Japanese automaker demanded that VW “remed[y] numerous breaches” of the two companies’ 2009 Framework Agreement by returning Suzuki stock.
“This capital alliance was intended to facilitate Suzuki’s access to VW’s core technologies,” Suzuki’s chairman and chief executive Osamu Suzuki said in a statement. “I remain disappointed that we have not received what we were promised. If Volkswagen will not allow access it must return Suzuki’s shares.”
VW spokesman Michael Brendel responded in a statement to Bloomberg, “The accusations are completely unfounded. Volkswagen has from the start done all it could to safeguard the partnership.”
The partnership involved the two auto manufacturers working jointly using each company’s strengths to meet global demand for environment-friendly vehicles. Under the agreement, VW bought 19.9 percent of Suzuki, which was to receive technology from the German automaker for developing hybrids and other green cars.
VW, Europe’s largest car manufacturer and the owner of Audi, Bentley, Lamborghini and truckmaker Scania, had sought to gain a foothold in the Asian market, specifically India, as well as know-how in the mini-car segment.
But the alliance became a source of dissatisfaction from both companies. After nearly two years of discussions, VW last month served Suzuki with a notice of infringement, citing the Japanese carmaker’s purchase of diesel engines from Fiat.
Suzuki, Japan’s fourth largest carmaker, countered it had sent notification that it would not use diesel engines made by VW. It added that comparing the German manufacturer’s engines with those from Fiat as a remedial action was “unreasonable.” It subsequently dissolved its partnership with VW.
Announcing the dissolution, Suzuki explained, “It is difficult to attain its primary aim for the partnership and also there is concern that the partnership would cause negative impact on Suzuki’s autonomous decision-making in its operating policy.”
The concern about independence stemmed from VW’s statement in its annual report that Suzuki is a “company over which Volkswagen AG has significant influence on financial and operating policy decisions.”
View full post on All Stories

October 18th, 2011
davidguide
Posted in
Tags: