Volkswagen significantly disparaged firm’s honor, says Suzuki

Article by Christian A., on September 23, 2011

Volkswagen AG isn’t budging from its claim that Suzuki Motor Corp. violated their partnership deal by purchasing engines from rival company Fiat S.p.A. The company was responding to the demand of Suzuki on Thursday that VW retract its accusation. Osamu Suzuki, chairman of the Japanese automaker, asserted that his company did not breach the partnership agreement and that the accusation had "significantly disparaged Suzuki's honor."

He disclosed that it had sent an official demand letter to VW CEO Martin Winterkorn. In response, VW contested that it failed to comprehend how sticking to contractually defined rights can be defamatory.

Also, VW stated that in its perspective, every effort has been made to continue the partnership, according to Autonews. Moreover, VW argued that the complaints of Suzuki saying that its honor has been breached were "theatrical."

VW repeated that the Japanese automaker has to "correct" an alleged contract violation stemming from its diesel engines purchase from Fiat.

On September 13, Osamu Suzuki stated that it wants a "divorce" to end the 20-month-old vehicle development alliance after VW's $2.9 billion investment failed to yield a single project. The relationship turned into a public feud after VW, which owns 19.9 percent of Suzuki, stated that it could influence decisions at the Japanese manufacturer.

Suzuki, which holds 1.49 percent of VW, intends to sell its shares if the alliance ends, the company stated in a Sept. 12 statement to the Tokyo Stock Exchange. On the other hand, VW stated that it has no plan to sell or reduce its holdings in Suzuki. According to industry watchers, the situation of the two automakers means that they are less likely to resolve their differences.

Topics: vw, suzuki, partnership

If you liked the article, share on:

Pin It

Comments

Recommended

Lamborghini has disclosed that it is looking into the possibility of releasing electric vehicles. With the Volkswagen Group revealing that it will be releasing electric vehicles within several years, there...
by - March 25, 2017
Daimler AG, through its Smart division, has disclosed that its two electric models, the Smart ForTwo and the Smart ForFour are now open for orders in Germany. Official market launch...
by - March 25, 2017
Lamborghini has officially offered clear proof that the Huracán Performante was able to set a new record at the Nürburgring Nordschleife with a time of 6:52.01 It was in early...
by - March 25, 2017
Top Gear has revealed that for its “Stars in a Reasonably Fast Car” segment, it will now be using a slightly enhanced Toyota GT86, which in the U.S. market is...
by - March 24, 2017
Porsche is laying aside any plans of pushing another hybrid hypercar into their line-up -- at least not at this time. Oliver Blume, Porsche Global Chief confirmed in a recent...
by - March 24, 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