Suzuki wants to walk out on its relationship with Volkswagen, just two years after the civil union began. It’s been an uneasy partnership and Suzuki claims the German giant has denied access to its technology and also had concerns over Suzuki’s independence. Clearly Suzuki aren’t happy about this and further claim they have attempted to negotiate with Volkswagen only to be told to talk to the hand because the face isn’t listening.
Last month Suzuki also lodged a notice of breach against Volkswagen, who in return said try to see it my way, we can work it out. Now, it seems, the irreconcilable differences point has been reached and Suzuki wants its 19.89% stake back from VW. The shares were purchased at a value of $2.5 billion in 2009.
[Source: Autoblog]
7 replies on “Volkswagen–Suzuki honeymoon is over”
VW better watch out in trying to be the biggest, the Euro & US economy are toast, GM ended up taking tax payer bail outs, not sure the German government would do the same.
Somehow I can’t see VWG being in any similar position as GM where they need a bail out…
@RE: please qualify your statement.
How did the biggest banks in the world need bailing out?
Motor manufactures business model are even more vulnerable , a share price drop along with consumer retraction is all it takes. I wouldn’t hold shares in any motor company given the current state of the world economy.
Bank / VWG – VWG / Bank… Sorry I don’t see the comparison… One builds cars whilst the other lends money to people who can’t pay it back…
I don’t understand the relation you’re trying to make between the two?
VW group builds great products everyone wants and is in good financial shape. GM sold terrible products no-one wanted and didn’t have two cents to rub together.
VW have a pipeline of great small cars so I’m not sure why they even needed Suzuki…
Totally agree Matt-
They’d be using Suzuki’s volume to plump up their own overall target.
And…. the penny now drops for Suzuki… Surely it was only ever going to be a one sided deal, with VW having more weight behind it than the light weight brand of Suzuki… Not to mention the great Microsoft strategy of buying out competitors who get close to their market to shut them down.