Suzuki is demanding VW to retract its claim regarding the violation of their tie-up agreement

Article by Christian A., on September 23, 2011

Suzuki Motor Corp. is demanding that its partner Volkswagen AG retract its claim that the Japanese automaker violated their alliance agreement by procuring engines from rival company Fiat. The demand was issued in a letter by Suzuki Chairman and CEO Osamu Suzuki and was addressed to VW CEO Martin Winterkorn.

Specifically, Suzuki wanted VW to recant its accusation publicly by September 30, 2011, on grounds that the reputation of the Japanese automaker has been "significantly damaged" by VW's statement.

On September 11, Volkswagen announced that Suzuki breached their 2009 tie-up agreement when it bought diesel engines from Fiat, according to Autonews.

The Japanese automaker denies that the purchase was in violation of their agreement. The dispute was one factor that prompted Osamu Suzuki the following day to ask for a "divorce" from the "ball and chain" of VW.

He insisted that VW should sell its 19.89 percent share in Suzuki, and in exchange, Suzuki would offload its 1.49 percent in VW. At a news conference on September 12 and again in latest press release, the Japanese automaker stated that it consulted VW regarding the purchase of Fiat engines in January -- and that both sides accepted it at the time.

Suzuki stated that it turned to Fiat after the engines offered by VW failed to meet the specifications of Suzuki. On another note, Suzuki also claimed that it was denied access to much of the technology of VW, despite earlier expectations for technology sharing.

Topics: suzuki, vw, partnership

If you liked the article, share on:

Comments

Recommended

You probably heard about Ford’s CEO Mark Fields’ departure from the company. Fields has spent almost three years with the company, and now, he is going to be replaced by...
by - May 28, 2017
A racing team is claiming that it has managed to break the lap record in its category in the ever-demanding Nurburgring circuit in 2016 while driving a road-going Volvo S60...
by - May 27, 2017
Aside from the officially confirmed BMW 8 Series, the next generation BMW M5 (F90) is getting a lot of attention from the fans, enthusiasts and even potential customers around the...
by - May 27, 2017
Automobili Lamborghini’s preparations for the production of its first ever sports utility vehicle, the new Lamborghini Urus, has reached new grounds as the Italian carmaker is disclosing plans to construct...
by - May 26, 2017
The upscale version of the GMC Yukon body-on-frame sport utility vehicle – the GMC Yukon Denali – has been refreshed for the 2018 model year. It now sports a new...
by - May 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries