Suzuki-Volkswagen squabble: no backing down either way

Suzuki-Volkswagen squabble: no backing down either wayAccording to reports, the ongoing dispute between Suzuki and Volkswagen over the companies’ capital tie-up took a turn for the worse last Friday, and there’s a likelihood that the matter may be taken to court.

At a press conference in Tokyo, Suzuki executive VP Yasuhiti Harayama said that Suzuki was promised easy access to VW’s environmental car technologies, but it never became a reality, referring to the 2009 agreement between the firms.

The German automaker said that it has honoured its commitments all along, and expostulates that it’s prepared to provide comprehensive technological assistance, but that Suzuki is misunderstanding the situation, the reports add.

On Friday, VW said – in response to Suzuki – that every possibility will be considered in weighing its options, suggesting that it may file suit to prove that the agreement has not been violated on its side.

Volkswagen also reiterated its stand that Suzuki has done nothing about its own violation of the contract, with regards to Suzuki’s cooperation with Fiat to procure diesel engines from the latter – VW says that the engine deal violates their tie-up agreement, but Harayama stated that it was not a breach of contract.

A September 30 deadline issued by Suzuki for VW to retract what it called a defamatory accusation went by without the desired response from the German automaker; it had received a response from the German automaker, but had then stated that it was “not worth commenting on.”

Both sides are effectively refusing to budge, and so a meeting between top executives may hold the key to resolving the conflict; Harayama added that Suzuki is hoping to talk to VW’s chief executive Martin Winterkorn as soon as possible.

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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

  • Lim Eng Tat on Oct 17, 2011 at 9:34 am

    One thing both companies have in common, they both come from countries who were partners ie alliance in WW2. Both companies come from countries that stole, raped and murdered people in concentration camps and countries that they colonised.

    So having a common past, I am sure they both will find a beneficial resolution to their current dispute.

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    • farghmee on Oct 17, 2011 at 10:24 am

      “Banzai” versus “Ich bin Stoß Deutscher zu Sein”

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    • clutch basah on Oct 17, 2011 at 10:41 am

      We learn from the past, we never live it. If not the world will not be as it is today

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    • Expatriate VN on Oct 17, 2011 at 11:00 am

      What a country WWII historical background to do with present generation auto makers in resolving their contractual dispute?

      How do you make correlation between “WWII history common past” and “find a beneficial resolution”?

      What statistical evidents that the past “stole, raped and murdered people in concentration camps and countries that they colonised” can become a solution to present contractual disputes for car makers!

      YOU ARE MORON, DEAD-BRAIN, IGNORANT OR PLAIN STUPID OF THE HIGHEST ORDER!

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      • tubik racer on Oct 17, 2011 at 11:24 am

        enuf is enuf la…its just automakers..tak abes2 dgn WWII..kuno betul…

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    • DarkAvenger on Oct 17, 2011 at 5:12 pm

      You must be 80 years or something, talking about World War 2 pulak….these are automakers…and has nothing to do with the generation which started the war. If like that, we can pinpoint history to dutch, portugese, british, Americans, etc etc…and even religons like Islam and Christianinity, all have their dark times….so when is it going to stop???

      People like you, keep draggin racism into non-related issues!!!!

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  • xxWWWxxx on Oct 17, 2011 at 9:36 am

    ah, little children…. so fighting lor, and listen to mummy n daddy, be good children ah…. n share ur toys with each other lor, then everyone hv a share n some playtime too. get the drift?

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  • Expatriate VN on Oct 17, 2011 at 11:05 am

    This contractual disputes are likely being resolve thru talk, meeting, negotiation, commercial settlements, etc.

    On a higher note, if this approach fails, then next course of action is likely thru arbitration or court case, and may lead to “long winding road” or argue until “the cow come home” ………… , which in the end line the pocket of lawyers with fat cheque!

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  • Just glad that Proton is not associated with VW, if they can do this to Suzuki an established auto maker, what more to say Proton. They have no intention to work together, they just want to take all. Dah nampak belang…

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  • Suzuki want ‘easy access to VW’s environmental car technologies’ but on the other hand they want to buy FIAT engines instead of VW engines?

    Very interesting approach. Possibly they thought that VW management is mentally ill? ;)

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    • farghmee on Oct 17, 2011 at 1:16 pm

      y did vw restrict suzy from buying from fiat?

      was that agreement meant suzy was owned by vw, therefore couldn’t buy anything from fiat?

      i thought suzy seek fiat becoz vw reluctant to give suzy what they wanted.

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      • You got it wrong. FIAT won’t give Suzuki ‘easy access to environmental car technologies’ either.

        They sell them engines, that’s all.

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      • i like the suzy part. haha

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  • I love VW !

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