According to a report, Suzuki isn’t very pleased with Volkswagen’s attitude in the partnership the two companies formed at the end of 2009. The tie-up was planned to give Wolfsburg an inside track into Suzuki’s small-car technology, and for Suzuki to access VW’s hybrid and a host of next-gen tech that it had no means financially to develop on its own.
Suzuki’s CEO Osamu Suzuki had insisted back then that the alliance would be formed on an equal basis, limiting VW’s stake in the Japanese automaker to 19.9% and stating it would pay the equivalent value to buy VW’s shares.
Now, cracks in the relationship have come about. Reuters reports that the Japanese automaker isn’t chuffed by its German partner’s claim that it could wield great influence over Suzuki’s management, something that was stated in VW’s annual report to shareholders, no less.
Suzuki’s executive vice-president Yasuhito Harayama told reporters in Japan just who is in charge of Suzuki’s relations with VW. “It was made very clear when we tied up with Volkswagen that we did not want to become consolidated, and that we would remain independent,” he said.
“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.”
Harayama added that Suzuki will continue to pursue operational relationships with a wide range of companies, while holding back on any projects with VW until the two parties are able to reaffirm their initial understanding. “Right now, there is no specific joint development project going on with Volkswagen,” he stated.
Last month, Suzuki announced a deal to buy 1.6 litre diesel engines from Fiat, a deal that the company says proves it can do without VW.
Update: Further reports coming about say that Volkswagen, in response to Harayama’s comments, has said it would not encroach on Suzuki’s autonomy.
“Volkswagen and Suzuki are and will remain two independent companies. No increase of Volkswagen’s Suzuki stake has been agreed upon,” Hans Demant, who is in charge of the alliance at VW, told Reuters through comments provided by his spokesman,
The rift isn’t that trivial sounding. As an analyst puts it, “Japanese managers do not readily criticise publicly, so the fact that in this case they have shows that there really is a problem.”
Whether it means the end of a long-term working partnership between the two companies remains to be seen.
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See…that is why proton prefer to avoid partnership with VW. VW is just strictly business, no friendship…despite all those business crap, they have very good products that most of us admire
‘VW is just strictly business, no friendship’
This is why VW is no.3 in the world in terms of sales… ;)
You have a funny understanding of business btw. Don’t you want to invest in my company? You pay and shut your mouth… :D
Indeed…they have a very good sales figure and a very good products too. But its not a proper ethical to win alone in so called business partnership. Partnership simply means that both parties want to achieve a win-win situation.
So in term of VW as a big brother in the automotive industri, do u want to let a small competitor to have all ur goodies while just owning 19.9% of it’s company?
From the source above, Suzuki & VW broke down due to Suzuki want to get on hand of the next generation hybrid technology, while VW is not getting much in return from Suzuki.. If just the Small-Car platform, do u think VW sales would double up?
In the end, if evaluate the benefit, VW will loss more as small-cars is not acceptable worldwide.. Suzuki may be laughing in the back if they really get hold on the hybrid technology which cost even more money to R&D…
haha..stupid japanese, brilliant malaysian…
anthony… why you say you like waffling… don’t you mean you like waffles?
I do, actually. With butter and maple syrup. But I also like waffling. :)
means you like making waffles?
This could have been Proton…and not in a good way.
Ya ! VW is trying to obtain P1 best kept secret “Garanteed Fail Power Window”.
HAHAHAH.. not funny.
so who smart and who stupid?
har…har….har…..error 404….not funny…..if its 2003 i might be laffing laffing…..
Very sad. Jolo you are just an old timer who never moves on.
Ya ! VW is trying to obtain P1 best kept secret “Garanteed Fail Power Window” & Arena@Jumbuck 2 Star ANCAP crast test.
It’s the classic ‘Diamler-Benz’ story all over again. It boils down to cultural differences and differnt ways of doing things. The Germans and Japanese have opposite and vastly differnt OBs and they don’t understand each other. The Germans wants the upper hand, the Japanese are hoping for a partnership.
Perhaps it is easier for the Germans to have an European partner because they would have something more in common, than from the other continents, like Asia or USA.
‘Japanese are hoping for a partnership’
Possibbly they are hoping for partnership like Toyota / P2?
Toyota delivers the car and P2 is allowed to put a P2 sticker on it? ;)
Nazis vs Nippons.
That’s very uncalled for. Germans won’t find any humor in that. Boo.
I agree with PakAbu. Not cool, bro.
Yeah, Japan are greedy but still i love them to the bits.
And theres no way Japan & Germany are going to war, they are AXIS.
Suzuki, another typical Japanese company attitude. Whether deal with smaller or bigger partner; they always wanna be Upper Hand.
Fact: the German gave their latest engines technology to Skoda if not their latest platforms to the Czech brand sister. Imagine if Proton become another Skoda? Better than what Mitsubishi did or even Toyota-Daihatsu to P2.
Verdict: German is more sincere than the Japanese.
Aiyah … Suzuki … what you complain about ??
Ur sooo small compared to your taikor VW …. so just have kowtow laa … thats how the world works Im afraid :)
When VW wanted Proton, probably they want a big share of the Malaysian auto market just like in China.
THEY CAME,,,,, THEY SAW,,,, THEY CONQUER,,,, EUROPEAN WILL ALWAYS BE EUROPEAN…….!!!