An epic saga has finally reached its climax. Suzuki has finally decided to part ways with Volkswagen. Yesterday, Suzuki has officially announced that it has terminated its two-year-old alliance with Volkswagen because the German czar did not honor its commitments.
Osamu Suzuki, chairman and CEO, Suzuki Motor Company said -
Today, Suzuki terminated the partnership with VW. Suzuki will be seeking the return of its shares from VW in arbitration. I am disappointed that we have to take this action but VW’s actions have left us no choice.
As the partnership is now over, Osamu wanted to buy back the 19.9% stake that the German Czar holds in Suzuki and go back to the original state as independent parties who do not restrict each other's business. However, VW is not ready to let to let go Suzuki and has rejected efforts by Suzuki Motor Corp. to force an end to a two-year-old partnership.
The partnership was formed because VW wanted to Suzuki to help them establish a foothold in the Indian market. In return, VW promised Suzuki that it will share its technology. As the situation now stands, each company has accused the other of breaching their cooperation agreement.
VW’s spokesperson commented on the situation -
We are extremely disappointed that Suzuki has taken this step to terminate the agreement. However, there is no legal foundation whatsoever obliging us to surrender our shares. Volkswagen will continue to hold its stake.
However, all said and done, if Suzuki wants to part ways with VW, the German czar should graciously allow the smaller Japanese counterpart to buy back its shares. The relationship is defunct and seems beyond repair. Holding on to something that will never revive will only increase the mudslinging between the two companies.
Source: AutoNews
