Suzuki unhappy with Volkswagen’s attitude in partnership

Suzuki unhappy with Volkswagen’s attitude in partnershipAccording 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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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • 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

    Like or Dislike: Thumb up 0 Thumb down 1
    • ‘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

      Like or Dislike: Thumb up 0 Thumb down 0
      • 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.

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        • Littlefire on Jul 19, 2011 at 10:36 am

          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…

          Like or Dislike: Thumb up 0 Thumb down 0
    • sagatron on Jul 19, 2011 at 8:27 am

      haha..stupid japanese, brilliant malaysian…

      Like or Dislike: Thumb up 0 Thumb down 0
  • you got it all on Jul 18, 2011 at 8:01 pm

    anthony… why you say you like waffling… don’t you mean you like waffles?

    Like or Dislike: Thumb up 0 Thumb down 0
    • Anthony Lim (Member) on Jul 18, 2011 at 8:06 pm

      I do, actually. With butter and maple syrup. But I also like waffling. :)

      Like or Dislike: Thumb up 0 Thumb down 0
  • tiadaid on Jul 18, 2011 at 8:17 pm

    This could have been Proton…and not in a good way.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Ya ! VW is trying to obtain P1 best kept secret “Garanteed Fail Power Window”.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Ya ! VW is trying to obtain P1 best kept secret “Garanteed Fail Power Window” & Arena@Jumbuck 2 Star ANCAP crast test.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Leonardo on Jul 19, 2011 at 8:46 am

    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.

    Like or Dislike: Thumb up 0 Thumb down 0
    • ‘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? ;)

      Like or Dislike: Thumb up 0 Thumb down 0
  • Nazis vs Nippons.

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  • FranCesCoTaufik on Jul 19, 2011 at 1:22 pm

    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.

    Like or Dislike: Thumb up 0 Thumb down 0
  • 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.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Lim Kopi on Jul 19, 2011 at 6:35 pm

    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 :)

    Like or Dislike: Thumb up 0 Thumb down 0
  • When VW wanted Proton, probably they want a big share of the Malaysian auto market just like in China.

    Like or Dislike: Thumb up 0 Thumb down 0
  • THEY CAME,,,,, THEY SAW,,,, THEY CONQUER,,,, EUROPEAN WILL ALWAYS BE EUROPEAN…….!!!

    Like or Dislike: Thumb up 0 Thumb down 0
 

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