P&A Providers & Administrators
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

Orange electric vehicle charging station.
Industry•by Lauren Lawrence•October 20, 2026

Charger Network Growth Slows

Despite a projected increase in public EV chargers in 2026, charging infrastructure remains a top concern for consumers as the gap between the most and least EV-friendly places remains substantial.

Read More →
Fan of $100 bills atop a white envelope
Industry•by Hannah Mitchell•October 13, 2026

Lenders, Consumers Take on More Auto Loan Risk

September records loosened credit access the most in over a decade as buyers took advantage of the conditions to afford trading, though loan applications fell.

Read More →
Red type R Honda civic parked on road.
Industry•by Lauren Lawrence•October 13, 2026

Next-Gen Hybrids in Sight

Dealerships can expect to see revamped hybrids from Honda next year as the company rolls out a new system and model lineup.

Read More →
Ad Loading...
Dodge ram emblem on orange vehicle exterior
Industry•by Hannah Mitchell•October 6, 2026

Gem State Stores Change Hands

A larger auto group founded in the industry’s early years sold two franchises to a neighbor group that's on a growth spurt.

Read More →
Graphic of model car driving on fake road.
Industry•by Lauren Lawrence•October 6, 2026

Charging In Motion

Honda has been researching wireless in-motion charging for electric vehicles since 2025, and new technology developments have put it a step closer to a final product.

Read More →
front grill of a Ford truck with blue Ford emblem
Industry•by Lauren Lawrence•September 30, 2026

Twin Cities Stores Sell

Minnesota-based Walser Automotive Group made what it called the most significant acquisition in its history with a three-rooftop deal in Minneapolis.

Read More →
Ad Loading...
Diesel engine on a production line in a factory
Industry•by Hannah Mitchell•September 29, 2026

U.S. Auto Sales Still Below Prepandemic Levels

Mobility Global industry observers don’t expect the market to return to the higher volumes that became routine before Covid but to stay well below its potential.

Read More →
Front of red tesla car.
Industry•by Lauren Lawrence•September 22, 2026

The Powertrain Shift

Electric-vehicle owners are backpedaling, according to new data, with product availability driving many to shift back to gas-powered engines.

Read More →
White BMW SUV driving on road.
Industry•by Hannah Mitchell•September 15, 2026

Achromatic Autos

The shades that dominate the U.S. car market don’t call attention to themselves, though grayscale may have plateaued after a 30-year upswing, research shows.

Read More →
Ad Loading...
Line of eclipse SUVs in parking lot.
Industry•by Lauren Lawrence•September 15, 2026

Used-Vehicle Affordability Worsens

Listing prices in August defied seasonal trends, rising above $27,000 for the second time this year.

Read More →