Detroit Bureau on Twitter

Posts Tagged ‘suzuki vw’

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.

Subscribe Now! Free!

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.