Volkswagen says returning Suzuki stake is out of the question

Article by Christian Andrei, on October 20, 2011

As you may know already, the Suzuki-Volkswagen partnership ended few weeks ago due to the fact that the Japanese manufacturer wanted to buy engines from Fiat, or at least this is what we heard. For those who don’t know, Volkswagen owns a 20 percent stake in Suzuki and you’d guess that in order to settle everything Suzuki would buy back its stake and that’s it.

Well, it appears that things are not quite simple as the German manufacturer says that returning the 20 percent stake is out of the question.

"We are prepared to reach out to Suzuki. Returning our 20 percent stake is out of the question for VW," said Hans Demant, who is in charge of the alliance at Volkswagen.

Last week, Volkswagen received a notice from Suzuki demanding the German company give it access to key technologies within weeks. If Volkswagen doesn’t want to do this, it must sell back in stake and quit the alliance.

Demant said that Volkswagen and Suzuki have complementary technological approaches but there is still industrial logic. Moreover, Volkswagen also said that it might take legal action against Suzuki after the Japanese automaker served it with the notice of breach of contract. [source: Autonews]

Topics: vw, suzuki, partnership

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