Suzuki-Vw conflict remains unsolved

Article by Christian Andrei, on October 2, 2011

Friday’s deadline for Volkswagen to retract what Suzuki claims to be a defamatory accusation has passed but VW hasn’t made a move to accomplish this. This means that the public feud between the two of them has yet to be resolved. Last week, Suzuki sent Volkswagen a letter to say that it has until Sept. 30 to publicly revoke a statement that Suzuki was in violation of a pact by signing a diesel engine deal with Fiat.

Suzuki said that this claim had hurt its reputation. Suzuki said last Friday that it got a response from VW that was "not worth commenting on."

Suzuki didn’t say what VW specifically said. Suzuki said that it has yet to decide what to do next after its request was ignored. Suzuki spokesman Shigeyuki Yamamura said the company wanted to keep their discussions with VW private. VW didn’t say what its e-mail to Suzuki said but it reiterated its demand that Suzuki should undo the alleged breach of contract within several weeks.

This month, Suzuki CEO Osamu Suzuki asked Volkswagen for a dissolution of their partnership because the German automaker had broken their initial agreement to be equal partners. Volkswagen has refused to sell back its 19.9% stake to Suzuki. The partnership was entered 21 months ago.

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