Relations between Suzuki and Volkswagen have soured, according to media reports, with an executive at the Japanese automaker saying the two needed to go back to the drawing board on their multi billion dollar partnership.
VW purchased a near 20% stake in Suzuki for US$2.5 bn in December 2009, a move welcomed by investors who expected VW to benefit from Suzuki’s leading small car technology, while Suzuki would have access to the German carmaker’s hybrid and other advanced technologies.
Go deeper with GlobalData
Little progress has been made, however. Suzuki Executive Vice President Yasuhito Harayama blames this on VW’s notion it could wield influence over the Japanese company’s management.
Harayama said: “It was made very clear when we tied up with VW that we did not want to become consolidated, and that we would remain independent.
“We feel we need to return to the starting point, including over the ownership ratio. The understanding that we are independent companies, and equal partners, is the absolute prerequisite in pursuing any specific cooperation.”
Numerous reports have suggested VW was looking to bring Suzuki under its control and Harayama’s remarks echoed the views expressed by CEO Osamu Suzuki in a recent blog, published on the Nikkei newspaper’s online site.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataHe wrote: “The two companies’ sizes differ vastly in size, so maybe with the passage of time they get the misguided notion that they have brought Suzuki under the VW umbrella.”
The CEA added that having perused VW’s technologies, Suzuki had “found nothing that it wanted right away”, and went on to say he was “relieved” that VW had reportedly made progress in developing a low-cost car without Suzuki’s help for South America and India.
Harayama stressed there were other automakers who were willing to work with Suzuki on an equal footing and that his company would continue to pursue operational tie-ups with a broad range of companies while holding back on any projects with Volkswagen until the two can reaffirm their initial understanding.
Last month, Suzuki announced a deal to buy 1.6-litre diesel engines from Fiat for a car to be built in Hungary.
