Suzuki has served Volkswagen with a legal notice claiming it has breached a partnership agreement
14 October 2011

Suzuki has served Volkswagen with a legal notice claiming the German company has breached an agreement to work in partnership.

Suzuki’s wants VW to ‘remedy’ numerous breaches of the companies’ Framework Agreement, which was established in December 2009.

VW has a 20 per cent stake in Suzuki, with the two companies agreeing to work with each other on mutually beneficial projects..

VW entered the agreement hoping to increase its small car know-how and to enter the Indian market, both areas where Suzuki excels. Suzuki had hoped to fast-track access to future technology including petrol-electric drivetrains.

But the partnership between Suzuki and Volkswagen has barely progressed since it started, although the Japanese manufacturer is claiming it has made “prolonged efforts to progress its relationship with VW, as agreed at the partnership's inception”.

Suzuki's Chairman and CEO, Osamu Suzuki, said: “This capital alliance was intended to facilitate Suzuki’s access to VW's core technologies. I remain disappointed that we have not received what we were promised.

“If Volkswagen will not allow access it must return Suzuki's shares. We are very encouraged by Suzuki's consistently solid performance. We remain on track for profitability and are excited about the potential for future growth."

Last month company boss Suzuki offered to buy back VW’s 20 per cent stake in his company and sell back his 1.5 per cent interest in the Wolfsburg concern.

 

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