Suzuki

Bi-Polar Suzuki Not Sure What To Do With VW


Suzuki and VW don’t seem ready to officially call it quits just yet. The two companies are still talking, with both sides continuing to see positives in what was to be a partnership on small cars and Suzuki’s domination of emerging markets.

Senior management from both sides, including Osamu Suzuki, are currently in talks to revive the partnership as it could help Suzuki spread their R&D costs over multiple products and give them access to VW technology. Volkswagen wants a greater foothold in India and China, where Suzuki has been wildly successful, a stark contrast to their presence in North America. If talks fail, the courts have some decisions to make.

The situation came to a head two years after the partnership between the two companies was initially formed, with both parties calling the other out for breach of contract. Since then, the matter has been before the courts as Suzuki demanded back VW’s 19.9% share in the Japanese company. Volkswagen is currently Suzuki’s largest shareholder, though the company is controlled by the Suzuki family.

For what it’s worth, talks could go either way. As we reported last year, Osamu Suzuki is a bit of a wild card. When the partnership was active, engineers at the two companies worked quite well with each other. But, Osamu Suzuki and other members of senior management at both companies felt they were getting raw ends of the deal.

A slighted Suzuki went to the press, calling off the partnership before making a phone call to Germany to notify Ferdinand Piech of his decision. The relationship between VW and Suzuki has been rocky ever since.

 





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