Volkswagen AG publicizes that it does not consider Suzuki Motor Corp. as an "associate" anymore, retracting wording that started the breakup of the two companies' partnership. VW stated in its yearly report in March that it could "significantly influence" operating and financial policy decisions at Suzuki. The statement enraged Suzuki.
On Thursday, Volkswagen said that the opportunity to apply "notable influence" on Suzuki is "no longer available" for the time being, adding that it now identifies Suzuki under "other holdings."
In response to the news, Junya Kumataki, Suzuki Italia's president restated to Automotive News Europe at a press event Thursday what the parent company has said of late, stating that Suzuki decided to "divorce from VW."
VW's partnership with Suzuki has been on a standstill in recent months, with the Japanese manufacturer insisting on VW to sell back its 19.9 percent share. VW has dismissed Suzuki allegations that it violated a partnership agreement by not sharing technology, and repeatedly stated that it plans to keep the holding. [source: Autonews]