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:

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