Suzuki denied talks with VW Group over partnership row

Article by Anita Panait, on August 1, 2013

Suzuki and Volkswagen Group have not resumed discussion on resolving a current row over a partnership deal, the Japanese carmaker said. Executive Vice President Toshihiro Suzuki remarked although there have been various reports on the talks, but no such discussions are happening. In 2011, Suzuki filed for international arbitration against Volkswagen after the German carmaker declined to sell back its 20 percent holdings in the Japanese company.

The German carmaker shelled out EUR1.7 billion ($2.3 billion) for the stake in January 2009 in an agreement that would have allowed VW to get a better traction in India, and Suzuki to gain access to fuel-saving technologies.

The partnership went from good to worse after VW said Suzuki had breached their contract by deciding to acquire diesel engines from Fiat. Suzuki is claiming that VW is withholding hybrid powertrain technology it vowed to share and is demanding that the German carmaker return the stake.

Media reports have stated that VW and Suzuki have resumed talks at the board level and are continuing to view the industrial logic for the partnership as compelling. Bloomberg reported on July 26, 2013 that VW Chairman Ferdinand Piech and Suzuki President Osamu Suzuki are both involved in the effort to strike a common ground over the partnership.

Suzuki logged a record JPY44.1 billion ($448 million) in operating profit for the quarter ended June 30, 2013, thanks to higher sales Indonesia and Thailand that allowed it to counter offset a slump in India. Indian subsidiary Maruti Suzuki posted a 10-percent drop in car sales in the country in the April-June 2013 period, no thanks to an economic slowdown as well as a decline in the popularity of diesel-powered units. Suzuki has raised its forecast for its full fiscal year operating profit to JPY165 billion. [source: Reuters]

Topics: suzuki, vw, partnership

If you liked the article, share on:


Login or Create new account to add a comment!


More than three decades ago, the DeLorean DMC-12 was produced by the DeLorean Motor Company. However, production was stopped due to issues within the company. The car itself was decent...
by - October 27, 2016
Tesla is making sure that all models under production will receive the necessary advanced hardware that will allow them to be autonomously driven. The fitment of these advanced hardware to...
by - October 27, 2016
Wondering how fast the 2017 Chevrolet Camaro ZL1 in actual driving? To provide customers a good idea on how fast the 2017 Camaro ZL1 could really get, Chevrolet recently had...
by - October 27, 2016
So, it is official! The new Honda Clarity FCV has the longest verified range of any zero-emissions vehicle currently on the road in the United States. One of the main...
by - October 27, 2016
Many have been anticipating Mercedes-Benz Vans’ newest luxury pickup truck, the X-Class. While Mercedes-Benz has yet to reveal the official production version of the X-Class, it was kind enough to...
by - October 27, 2016