Vw-Suzuki saga continues as Volkswagen doesn’t want to end the partnership

Article by Christian A., on November 20, 2011

Suzuki Motor Corp intends to purchase around 20 percent of its own stock back from Volkswagen by November 16, 2012, the Japanese automaker disclosed. The plan, however, is contingent on Volkswagen releasing the shares. Suzuki will seek mediation in case VW will not release the shares -- either to the Japanese company or to a third party that it specified.

In January 2009, VW purchased 19.9 percent share of Suzuki for around 1.7 billion euros or $2.4 billion.

On the other hand, Suzuki acquired a 1.49 percent interest of VW. The tie-up was presented as a partnership of equals, meant to reinforce the presence of VW in India for small vehicles and to provide Suzuki access to technology it that it could not afford to develop on its own.

However, the two automakers have been at odds since VW stated in its March yearly report that it could "significantly influence financial and operating policy decisions" at Suzuki. VW had also described Suzuki as an "associate," a term that VW later dropped. [source: Autonews]

Topics: vw, suzuki, partnership

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