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News and Information about vw and partnership

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Ford kills rumors over potential merger or equity swap with Volkswagen

In June this year, rival carmakers Ford and Volkswagen inked a memorandum of agreement for a possible strategic alliance. Months after signing the MoU, automotive industry analysts are now floating the ideas of possible merger or an equity swap between the American and German companies. Nonetheless, Ford is quick enough to quash such ideas even before they get out of hand.

Under the signed MoU, Ford and VW are exploring a number of potential projects in several areas like the development of a range of commercial vehicles together. Likewise, a possible partnership would also work to better serve the evolving needs of customers. The parties have already made it clear back then that the potential alliance wouldn’t involve any equity arrangement.

However, The Detroit Bureau published an analysis that the potential alliance between Ford and VW might go beyond the commercial vehicle market, since doing so could be beneficial for both carmakers. For instance, Ford can benefit from VW’s robust presence not just in Europe, but also in Latin America and China. On the other hand, VW can take advantage of Ford’s strong fortified status in the United States, particular in the pickup and SUV segments.

Read the entire article Ford kills rumors over potential merger or equity swap with Volkswagen

VW AG and TATA Motors formed an alliance to develop new products

It seems the highly successful Renault-Nissan Alliance has led to more partnerships between carmakers. Volkswagen and TATA Motors have reportedly inked a longtime partnership deal on Wednesday. The two companies have allegedly signed a Mou or Memorandum of Understanding towards the development of new technologies, products and platforms. According to Autocar India, it has been more than a year since the manufacturers have been talking about the agreement.

The German automaker has been eyeing the Indian manufacturer as potential partner in exploring new markets. Being the largest vehicle firm in India, Tata Motors is also looking to increase its sales margin within or outside its market range. Nevertheless, this new partnership will help Tata come out with more vehicle lineups by 2019. It should be noted though that Jaguar, Land Rover and TAMO (TATA’s sub-brands) are not part of the alliance.

TATA’s latest AMP (or Advanced Modular Platform) is probably the most feasible architecture for the new collaboration. After the AMP received the EDAG approval, Volkswagen has found a more affordable alternative to its existing MQB-A platform. The AMP offers flexible architecture as well as definite cost advantage. At the very least, this will allow them to produce more extensive model range.

Read the entire article VW AG and TATA Motors formed an alliance to develop new products

Timing of arbitration ruling on Suzuki-VW dispute remains unclear

It remains unclear when an international arbitration court will issue a ruling on a dispute between Suzuki Motor and Volkswagen AG over a failed collaboration. Suzuki filed for international arbitration in November 2011 following a refusal by Volkswagen to sell back a 19.9-percent stake in the Japanese carmaker that it acquired in January 2010 for EUR1.7 billion ($2.3 billion).

Sources told Automotive News earlier this month that an arbitration court based in London had already finished hearing witnesses and was expected to give a decision before the end of 2014.

Suzuki chairman Osamu Suzuki, when asked on whether the two parties could reach a settlement, said repeatedly: "We are the ones that took this to court." Suzuki and Volkswagen reached an agreement in December 2009 to create a partnership on technologies in areas like hybrid and electric vehicles.

Read the entire article Timing of arbitration ruling on Suzuki-VW dispute remains unclear

Dieter Zetsche said Daimler rejected partnerships with BMW, Fiat and Volkswagen

Daimler is open to new approaches to grow its business and has even discussed with Volkswagen, BMW and Fiat about developing a common small car platform, remarked chief executive Dieter Zetsche. "When we were planning the current generation of front-wheel drive vehicles we were entertaining a number of discussions with BMW, with Fiat, with VW to check whether it makes sense to do something together," Zetsche said.

He remarked that Daimler eventually concluded that it would not gain much from such cooperation, which would only be marginal. Zetsche indicated that he was open to considering broader strategic steps during the remainder of his term in office. 

"If we were to just continue to do our homework, and not develop more elements going forward, we definitely would fall back," Zetsche remarked. Zetche’s contract as Daimler CEO ends in 2016. He noted that he was currently satisfied with Daimler's existing operations.

Read the entire article Dieter Zetsche said Daimler rejected partnerships with BMW, Fiat and Volkswagen

Japanese company Suzuki Motor Corp. and German auto giant Volkswagen Group have not resumed discussion on resolving a current row over a partnership deal, the Japanese carmaker said. Executive Vice President Toshihiro Suzuki remarked although there have been various reports on the talks, but no such discussions are happening. In 2011, Suzuki filed for international arbitration against Volkswagen after the German carmaker declined to sell back its 20 percent holdings in the Japanese company.

The German carmaker paid EUR1.7 billion ($2.3 billion) for a stake in January 2009 in a deal that would have allowed Volkswagen and Suzuki to gain certain advantages and benefit from the strengths of each partner.

According to the agreement, VW acquired a stake of around 19.89 percent in Suzuki, while the Japanese company took a share of 1.49 percent in the German carmaker. The alliance between Suzuki and was seen as a way for the German auto giant to gain access to the India market, where Suzuki is considerably a strong player. On the other hand, it was seen as way for Suzuki to gain access to advanced technologies that it cannot afford to develop but VW has.

Read the entire article Suzuki denied talks with VW Group over partnership row

Volkswagen AG and Suzuki Motor Corp. are studying whether to revive their cooperation efforts or agree on a settlement to terminate a two-year legal battle over a botched partnership, people privy with the matter told Bloomberg. The sources added that the effort involves senior executives from both parties, including Suzuki President Osamu Suzuki.

One of the sources remarked that VW and Suzuki still see the industrial logic for the cooperation as compelling. The effort, however, may still collapsed and failure of the talks might lead to the continuation of legal proceedings at a London-based arbitration court over the future of the partnership.

Frank Biller, a Stuttgart-based analyst at LBBW, remarked to Bloomberg VW and Suzuki stand to benefit if they could overcome the disagreements over leadership claims at the partnership, adding that both carmakers would still “complement each other very well.”

Read the entire article Volkswagen and Suzuki are exploring options over partnership

Executives from German carmakers Daimler and Volkswagen will hold a meeting this month to discuss the possible extension of a partnership to build light commercial vehicles. Volker Mornhinweg, head of Daimler unit Mercedes-Benz Vans, told Reuters that he will meet with the chief of VW commercial vehicles to explore possibilities for further cooperation between the two carmakers.

According to Mornhinweg, the meeting with his counterpart from VW will be held during the IAA international auto show for commercial vehicles in Hanover, Germany, at the end of the month. Daimler and VW currently cooperate in producing transporter vans. Daimler is building the Mercedes-Benz Sprinter along with VW's Crafter van, using the same technology platform.

Daimler produces around 40,000 Crafter vans at its Duesseldorf plant in Germany, but the set-up may change in 2016 when the deal between the carmakers expires in 2016. In March 2012, VW said it may not extend an agreement with Daimler to develop the successor model for the Crafter after it acquired a majority stake in MAN in November 2011.

Read the entire article Daimler and VW execs to discuss possible partnership extension

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 a 19.9 percent stake in Suzuki for JPY222.5 billion ($2.86 billion) as part its expansion plans in India and other growing markets. 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."

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

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.

Read the entire article Volkswagen says returning Suzuki stake is out of the question

Amid the ongoing dispute on the partnership pact, Volkswagen AG declared that it doesn’t want to lose its stake in Suzuki Motor Corp. However, Volkswagen declined to give further details, explaining that the talks between the two will be “exclusively conducted internally." Meanwhile, a Suzuki spokesman said that it hasn’t been formally contacted by Volkswagen about the issue.

To demand for access to key German technologies, Suzuki served VW with a notice of breach of contract. Suzuki said that unless VW gives in to its demand within weeks, it would have to sell back its stake and give up the alliance.

In January 2009, VW purchased a 19.9% interest in Suzuki for about 1.7 billion euros ($2.4 billion), making VW its biggest shareholder. In addition, Suzuki got a 1.49% share of VW. Last Friday, Volkswagen said that it’s considering whether to take legal action against Suzuki. VW spokesman Michael Brendel said that the company is “keeping all options open,” including legal action.

Read the entire article Vw wants to keep its stake in Suzuki despite breaking the partnership

Legal actions are being considered by Volkswagen over a dispute with Suzuki Motor Corp. related to their partnership. Suzuki asserts that Volkswagen breached their contract and demands that in the next few weeks, the German-based automaker should provide access to its key technologies.

Suzuki said that if VW doesn’t give in to their demands, VW has to sell back Suzuki’s stake and leave the alliance. Suzuki alleges that Volkswagen violated a provision in the partnership pact by withholding hybrid technology it pledged to share.

In a statement, Suzuki's Chairman Osamu Suzuki said that the capital alliance was meant to facilitate Suzuki's access to the core technologies of Volkswagen. In response, Volkswagen said that it has been honoring its agreements with Suzuki.

Read the entire article Vw might take legal action against Suzuki

Suzuki Motor Corp. is demanding that its partner Volkswagen AG retract its claim that the Japanese automaker violated their alliance agreement by procuring engines from rival company Fiat. The demand was issued in a letter by Suzuki Chairman and CEO Osamu Suzuki and was addressed to VW CEO Martin Winterkorn.

Specifically, Suzuki wanted VW to recant its accusation publicly by September 30, 2011, on grounds that the reputation of the Japanese automaker has been "significantly damaged" by VW's statement.

On September 11, Volkswagen announced that Suzuki breached their 2009 tie-up agreement when it bought diesel engines from Fiat, according to Autonews.

Read the entire article Suzuki is demanding VW to retract its claim regarding the violation of their tie-up agreement

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."

Read the entire article Volkswagen significantly disparaged firm’s honor, says Suzuki

Suzuki Motor is seeking to terminate a two-year partnership with Volkswagen, making it highly improbable that there will be a full takeover. A source from the senior ranks told German magazine Der Spiegel that a full takeover of Suzuki can’t be ruled out.

Commerzbank analyst Daniel Schwarz said that Suzuki chairman and CEO Osamu Suzuki won’t want to sell and so it won’t be a simple thing for VW to take over the unwilling company.

Last week, Suzuki said that it sought to end its two-year alliance with VW, which accused the Japanese automaker of being in violation of the pact when it entered a diesel engine supply deal with Fiat, says Reuters.

Read the entire article Volkswagen unlikely to obtain a full takeover of Suzuki

Volkswagen AG said that Suzuki Motor Corp.’s move to buy engines from Fiat broke the rules cited in their contract agreement. In a statement, VW said that it has given Suzuki several weeks to “remedy the infringement.” While VW considers this as a “regrettable” move, it is necessary. VW told Suzuki that it is willing to discuss the issue.

The conflict between the two automakers started in March when VW referred to Suzuki as an “associate” in its annual report.

VW had also said in this report that it could “significantly influence financial and operating policy decisions" at Suzuki. Last June, Suzuki announced its decision to purchase diesel motors from Fiat for cars assembled in Hungary.

Read the entire article Vw to end partnership with Suzuki due to firm’s intentions to buy Fiat engines

The planned alliance of Volkswagen AG and Suzuki Motor Corp. may just end before it is completed. The argument started in March when VW stated in its annual report that it could "significantly influence financial and operating policy decisions" at Suzuki, which it described as an “associate.”

That did not sit well with Suzuki. Since then, the two companies have been arguing back and forth, prompting VW to stop its efforts to invest 222.5 billion yen or $2.9 billion into an operational alliance.

The partnership was supposed to merge Volkswagen's international scope as the third largest vehicle manufacturer in the world and Suzuki's prominent position in India, which is the second fastest emerging major economy in Asia, says Autonews.

Read the entire article Vw-Suzuki planned alliance may end before it is completed

Volkswagen AG and Suzuki Motor Corp. deny that they are terminating their alliance. German newsletter Platow Brief had reported earlier that the two automakers are ending their partnership but according to VW spokesman Michael Brendel, the report is "nonsense." A Suzuki spokesman has also come out to say that there’s no truth to the report.

On July 28, Chief Financial Officer Hans Dieter Poetsch said that VW is reviewing its partnership with Suzuki as their cooperation has been developing more slowly than anticipated.

In January 2010, VW purchased a 19.9% stake in Suzuki for 222.5 billion yen ($2.86 billion) as part its expansion plans in India and other growing markets.

Read the entire article Volkswagen denies reports that it will quit alliance with Suzuki

The relationships between Volkswagen AG and Suzuki Motor Corp. have become unpleasant, as no progress has been made in the partnership since December 2009 when VW purchased a nearly 20 percent share in Suzuki for $2.5 billion.

Investors looked at this purchase positively as they thought that Suzuki would gain access to Volkswagen's hybrid and other advanced technologies while Volkswagen would have an inside track into Suzuki's leading small-vehicle innovations.

However, after more than 18 months, there was no progress made in the partnership, a fact that Executive Vice President Yasuhito Harayama of Suzuki blamed on Volkswagen's belief that it could exert influence over Suzuki's management.

Read the entire article Relationships between Volkswagen and Suzuki have become unpleasant

Discussions between Volkswagen AG and Russia's GAZ on setting up a Russian vehicle assembly plant are advancing, according to Europe's biggest carmaker. Last September, Volkswagen CEO Martin Winterkorn said that VW is talking about an assembly deal with GAZ. Foreign carmakers get tax breaks when they opt for local assembly.

Volkswagen’s plant in Kaluga can produce 150,000 units a year. Last Wednesday, the Financial Times said that Volkswagen seeks to assemble up to 150,000 vehicles under contract in Nizhny Novgorod if talks with GAZ push through.

According to a Volkswagen spokeswoman, this figure is wrong but she declined to make clarifications or give further details. Russian automakers, who struggled in the country’s worst recession in 15 years, have been turning to foreign expertise to increase gain market share and so that they can offer vehicles that can compete with Western brands.

Read the entire article Report: Talks between Volkswagen and GAZ reached an advanced stage

Volkswagen and Cummins are teaming up to develop a new generation of non-automotive, high-compression engines. These two companies are renowned for the advances made in diesel technology. Volkswagen and Cummins MerCruiser Diesel, the boating division of the Cummins engine group, are partnering to produce future marine products.

Both companies will aim for products that comply with Tier 3 emissions standards in the US, which will take effect in 2012. In Europe, the new diesel standards will go into effect in 2014. Starting from 2011, all Volkswagen-manufactured marine engines will be supplied, marketed, and branded under the Cummins name.

Dr. Werner Neubauer, Volkswagen board member, said that what it contributes to the alliance is its technological know-how in engine production and the high quality standard of Volkswagen products.

Read the entire article Volkswagen and Cummins MerCruiser Diesel (CMD) announce strategic partnership