Volkswagen has missed a deadline set by Suzuki to retract their claim that the Japanese company had breached their contract agreement.

Where does this Volkswagen and Suzuki? Is there any chance for their strained relationship to be revived? It would appear not after Volkswagen failed to apologise to withdraw their statement.

Volkswagen and Suzuki  were in dispute after the Japanese company used Fiat to supply them with diesel engines, claiming the supply of Volkswagen engines were not feasible. Volkswagen were unhappy with that agreement claiming that their contract had now been broken.

Suzuki is unhappy by the whole situation as they feel that they now have a damaged reputation following Volkswagen’s statements. The news that Volkswagen have failed to apologise will now further anger the company.

Many believe this dispute should have resolved in a more professional and friendly manner.  Some believe that the whole situation may have even been avoided. With both standing proud and refusing to back down, reputations of both companies will be further dented from this current situation alone.

Who’s right in this whole dispute? Volkswagen have completely avoided Suzuki’s recent demands of retracting the statement claiming that the “facts haven’t changed”.

What can be done to make everyone happy?

Suzuki has demanded that Volkswagen sell their shares in the company, which equates to 19.9%. It cost the German company €1.7 Billion back in January of 2009. If their stake in Suzuki was sold, they would make an embarrassing loss. Taking such action would probably not be considered at all during economic times like these purely due to financial reasons.

The desirable outcome for Volkswagen would be for Suzuki to end their deal with Fiat. However this again will not be considered. It wouldn’t make financial sense for the company and is sure to see their relationship with Fiat damaged also, who are helping to build the engine for the Suzuki SX4.

It would appear after analysing the situation; nothing can be done to build bridges to resolve the situation adequately. Volkswagen and Suzuki may keep their current partnership. Where will this lead too? Could we be wrong and could their a resolution found to make everyone happy? It doesn’t look likely at all.