Suzuki has "officially determined dissolution of the comprehensive partnership and the cross-shareholding relationship with Volkswagen AG."
Reasons for the break up were Volkswagen AG’s minor equity participation of 19.89 per cent in Suzuki, making it difficult for the company to "receive technology transfer (including receiving technical information, etc.) from Volkswagen AG so that Suzuki could accelerate its development of environmental technology and other engineering areas to cope with intensifying competition of technology development in the worldwide automotive industry."
Earlier today, Suzuki demanded that the VW Group sells its 20 per cent stake in the Japanese firm, as the relationship between the two partners reached breaking point.
VW purchased its stake less than two years ago, with the two companies agreeing to work with each other on mutually beneficial projects.
However, Osamu Suzuki, Suzuki’s chairman, announced today: “We asked for a divorce. There is no longer any purpose to VW’s shareholding.”