Suzuki says it wants to end alliance with Volkswagen

Suzuki Motor Corp said Friday it was terminating itspartnership with Volkswagen AG and threatened to take the matter toan international arbitration if the German company refused to sellits 19.9-per-cent stake in its smaller Japanese partner.

The two carmakers are at odds over claims by Suzuki thatVolkswagen had not granted it access to certain technologies, inbreach of a promise made in a 2009 partnership deal. Relations souredfurther after VW called Suzuki an “associate” in its annual report.

“Today Suzuki terminated the partnership with VW,” companychairman and chief executive Osamu Suzuki said.

“I am disappointed that we have to take this action but VW’sactions have left us no choice. They have continued to refuse ourattempts on numerous occasions to resolve these issues throughnegotiation.”

A spokesman for Volkswagen said in a statement that the Germancarmaker wanted to hold on to its stake in Suzuki. Suzuki wantsVolkswagen to sell back its stake, either directly to Suzuki or to adesignated third party.

The Japanese manufacturer first decided to end the partnership inSeptember after the German company emphasized its influence over itsJapanese “associate” in its annual report.

Volkswagen bought the shares in December 2009 to boost itspresence in the Indian market for compact cars.

If Volkswagen refuses to dissolve the partnership, Suzuki said it“will begin arbitration, in order to re-establish the genuineindependence of Suzuki.”

The German company has not changed its position since it refusedSuzuki’s first request to end the alliance in September, the Nikkeibusiness newspaper reported. 

(DPA)