The cold war going on between Volkswagen and Suzuki has finally come to an end as both have parted ways. Both the manufacturers had signed a deal two years ago but Suzuki brought the alliance to an end due to a very considerable reason.
In 2009, VW acquired 19.89 % stake in Suzuki Motor Corporation through the deal and Suzuki, as per the deal, was granted access to Volkswagen’s technologies so that together they could bring better products. Believing in the claims of Suzuki, VW had shown a non-cooperative behavior towards sharing technology with the former over these two years and this is the most important reason for the separation.
SMC Chairman and CEO Osamu Suzuki, 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,”
In the deal, as a clause, it was stated that Suzuki will have access to the core technology of Volkswagen but on the contrary VW denied access to it. “It also became clear that there were differences between Suzuki and Volkswagen in the understanding of ‘independence’. Suzuki cannot therefore establish a relationship of mutual trust which is the basis for collaboration between the two parties,”sources said.
“VW have continued to refuse our attempts on numerous occasions to resolve these issues through negotiation. I am more disappointed that having shaken the hand of Dr Winterkorn in agreeing to this partnership, he has not honoured his commitment to grant Suzuki access to what was originally agreed.” Suzuki said while accusing VW Chairman Martin Winterkorn.
SMC also stated, “Unless Volkswagen AG effectuates the disposition of Suzuki shares to Suzuki or its designated third party immediately, Suzuki will begin arbitration, in order to re-establish the genuine independence of Suzuki by compelling the disposition of Suzuki shares to Suzuki or its designated third party.”
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