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VW Holds Suzuki Stake Though Legal Battle Looms

Japanese maker accuses erstwhile German partner of breaching their agreement.

by on Oct.17, 2011

Suzuki was hoping to pick up some of VW's technical know-how for vehicles like its Kizashi.

Despite an increasingly tense war of words that could land the erstwhile partners in court, Volkswagen says it has no intention of selling off its stake in Japan’s Suzuki Motor Corp.

The two makers have been engaged in an increasingly noisy public spot, in recent weeks, Suzuki officially serving Volkswagen AG with a “notice of breach “in relation to the companies’ Framework Agreement, which was signed in 2009.

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Complicating the situation, VW now accuses Suzuki of breaching the agreement itself by agreeing to purchase diesel engines from Volkswagen’s Italian rival, SpA.

“The discussion between both parties will be exclusively conducted internally,” said a statement from Volkswagen, Europe’s largest maker and currently the second-largest worldwide behind General Motors.


Suzuki in the U.S. to Stay, Maker Insists

Maker vows to press on despite weakening volume.

by on Feb.11, 2010

So far, the launch of the 2010 Suzuki Kizashi hasn't done much for the brand's sales.

Contrary to speculation floating around the industry, Suzuki has no plans to stop selling cars and sport utility vehicle in the United States, senior officials are vowing.

During a press conference at the Chicago Auto Show, Suzuki Vice President Gene Brown emphasized that, “We’re here to stay.”  Questions about its long-term commitment to the market have been raised a number of times, in recent years, and surfaced, again, after General Motors bought out Suzuki’s stake in the CAMMI joint venture Suzuki helped set up, in Ingersoll, Ontario.

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With demand for its own products going, while Suzuki struggles to gain traction here, GM was eager to take over the plant to build its newest crossover vehicles. But Suzuki is looking for ways to kick-start its own sales in the U.S., one of the few global markets where it doesn’t have a strong presence.