Sometime ago, Japanese auto major, Suzuki made it clear that they are to put an end to their partnership with one of the world’s largest manufacturer,the Volkswagen Group. Volkswagen had earlier purchased as much as 19.9% of Suzuki Motors shares for a price of good $2.5 billion, but due to rapidly increasing and consistent clashes of ideas within the management of the two, Suzuki decided to call off the deal and decided that they will buy back the 19.9% stake from Volkswagen Group by November next year. Osamu Suzuki, CEO & Chairman, Suzuki Motors 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.”
Suzuki’s and Volkswagen’s relationship hit a rough patch when VW’s annual report, stated that they will “significantly influence financial and operating policy decisions” at Suzuki. This statement, reportedly, gave a blow to the sentiments of Suzuki Motors. Mr Suzuki told, “I am disappointed that having shaken the hand of Dr. Winterkorn (VW Chairman) in agreeing to this partnership, he has not honored his commitment to grant Suzuki access to what was originally agreed.”
When contacted, Eric Felber, Spokesperson of Volkswagen Group said that they will not be selling their stake in Suzuki Motors at any price as they intend to keep their stake in Suzuki as it is.