agent Entrepreneur logo
MenuMENU
SearchSEARCH

Suzuki Urges VW to Discuss Breaking Ties

October 15, 2011
2 min to read


TOKYO — In a deepening dispute, Suzuki Motor Corp. said Friday it sent a notice to Volkswagen AG alleging that it had breached terms of the car makers' alliance. Volkswagen rejected the allegations.


"Volkswagen always stuck to existing contracts," a company spokesman said, adding VW "did everything to ensure a successful partnership," and regrets Suzuki's step.

Ad Loading...


"We are keeping our options open, and after examining them we will decide on further proceedings," the spokesman said, adding that these may include legal measures, reported The Wall Street Journal.


The two car makers have found it hard to launch any joint operations since they formed the alliance in late 2009, and Suzuki last month asked VW to agree to dissolve the partnership—shortly after VW claimed Suzuki had infringed on the agreement in procuring engines from a third company.


A month later, there is no sign of a settlement, and Suzuki said Friday that Volkswagen hasn't yet agreed to discuss dissolution.


The Japanese company said it sent a notice to VW asking it to remedy "numerous breaches." Suzuki has been unable to gain access to VW's core technologies, Yasuhito Harayama, an executive vice president, said at a press conference.


"For Suzuki, this was the biggest goal of the alliance," he said. "But this hasn't materialized." He declined to specify other breaches.

Ad Loading...


Osamu Suzuki, the Japanese company's chairman and chief executive, said in a release, "If Volkswagen will not allow access, it must return Suzuki's shares."


For its part, Volkswagen entered the alliance with hopes of benefiting from Suzuki's expertise in the strategically important small-car segment. It acquired 19.89 percent of Suzuki at the end of 2009 for roughly €1.7 billion ($2.3 billion at current exchange rates), and Volkswagen Chief Financial Officer Hans-Dieter Poetsch has said his company has no intention of reducing or selling its stake.


Mr. Harayama said that if VW remains reluctant to discuss dissolving the alliance, Suzuki "may have to consider further action," though he declined to say whether that might mean legal action.


On Sept. 11, with their talks on alliance projects failing to proceed smoothly, Volkswagen sent a notice of infringement relating to Suzuki's procurement of diesel engines from Fiat SpA of Italy. Suzuki responded that the purchase didn't breach the agreement, and asked VW to retract the claim.


On the Tokyo stock market Friday, Suzuki shares briefly dropped as much as 4 percent but quickly regained most of that decline to finish the day down 0.2 percent at ¥1,656 ($21.52). In late-morning trading in Frankfurt, shares of Volkswagen were up 1 percent at €102.50 ($141.35).

More Industry

F&Iby Lauren LawrenceFebruary 27, 2026

Price Driving Insurance Churn

Over half of insurance holders ages 18 to 29 reported to be 'somewhat' likely to change providers in the next 90 days, according to CivicScience, which found that interest was lower among older age groups.

Read More →
Industryby Lauren LawrenceFebruary 26, 2026

AI Drives Dealer Website Traffic

Total visits to dealer websites from generative artificial intelligence platforms grew more than 15 times year-over-year, signaling a shift in how many consumers shop for cars online.

Read More →
Industryby Hannah MitchellFebruary 26, 2026

Automakers Tops in Fuel Economy

In the U.S., Honda has the most efficient gas-electrified combo lineup while Tesla beats all automakers in annual EPA ranking as brands built their alternative-fuel offerings.

Read More →
Ad Loading...
F&Iby Lauren LawrenceFebruary 25, 2026

Report Finds Year-End F&I Strength

Deal volume ebbed and flowed throughout 2025, but product performance remained steady, according to automotive technology and data intelligence solutions provider StoneEagle.

Read More →
Industryby Hannah MitchellFebruary 24, 2026

Overall Consumer Confidence Up

Americans’ view of present business conditions, the labor market and family finances, though, are still in the dumps, and if they plan to buy cars, many target used units.

Read More →
Auto Financeby Lauren LawrenceFebruary 23, 2026

Auto Loan Forecast Bucks Market Trend

Auto loan originations rose over 6% year-over-year in the third quarter of 2025, but TransUnion predicts a slight decline in auto loan growth this year, making it an outlier in the company's overall lending forecast.

Read More →
Ad Loading...
F&Iby Hannah MitchellFebruary 23, 2026

Some Auto Brands Cheaper to Insure

A new top 10 list ranks the least expensive for average full insurance coverage on a clean driving record and high driver credit scores.

Read More →
Industryby StaffFebruary 20, 2026

Learn to Manage the Mayhem at Agent Summit

Rob Mancuso – president of Mancuso Automotive – will present a Keynote at the 2026 event.

Read More →
Fixed Opsby Hannah MitchellFebruary 20, 2026

Auto Recalls Sank Last Year

2025 Sedgwick data indicate that the number of vehicles affected fell to its lowest point in more than a decade.

Read More →
Ad Loading...
Industryby Lauren LawrenceFebruary 19, 2026

Affordability Leads Top-Rated List

Edmunds’ editorial team tested 300-plus vehicles to help determine the Top Rated Awards for 2026, and one brand stood out with multiple rankings, including Best of the Best.

Read More →