According 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.