VW, Suzuki alliance stumbles, again
Volkswagen serves Suzuki with an infringement notice over diesel engine supplyFollowing the July news that Volkswagen's tie-up with Suzuki was on shaky ground comes an announcement that the partnership is now under review.
Volkswagen is serving its Japanese partner with a notice of infringement concerning the supply of diesel engines produced by a third-party manufacturer (Fiat). The German company stating simply that the "terms of its cooperation have been contradicted".
While specifics of the breach remain undivulged, some media outlets report Suzuki is now seeking to end its two-year alliance with VW, the company formally issuing a statement to the Tokyo Stock Exchange asking for Volkswagen to sell its 19.9 per cent share. In return, Suzuki would relinquish its 1.5 per cent share in Volkswagen.
Other sources have said the spat relates specifically to a disagreement pertaining to Suzuki's sourcing of its 2.0-litre turbodiesel engine from long-time supplier, Fiat. Volkswagen is apparently annoyed the Japanese company won't use its engines instead. (Suzuki SX4 and Fiat Sedici share the same platform).
While Volkswagen representatives have declined to offer a statement on the matter, the firm's official line is that the action is "regrettable, but necessary" and says it wishes to stress that in spite of the action, it still regards Suzuki as an attractive investment.
To date, there have been no mutual projects between Suzuki and Volkswagen.
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