No further comments will be made by the German automotive giants as the issue as they look to hold private discussions with Suzuki. A spokesman from Volkswagen was quoted to have said “The discussion between both parties will be exclusively conducted internally.”
Recently there have been a number of negative headlines regarding this disagreement. The bad publicity has damaged both the companies’ reputations to some extent.
Volkswagen still keen
Our last report on Volkswagen and Suzuki sighted that the Japanese firm were keen on the ties between the two being cut. However today news is means that Suzuki’s wishes won’t be met with Volkswagen intending to keep hold of their 19.9% which was bought for €1.7 billion stake. It appears that they hope to continue their mission with succeeding in the small car market in countries like India with the help of Suzuki.
Volkswagen has said “Volkswagen will not be making any changes to its shareholding in Suzuki Motor Corp.”
Suzuki not so keen
Suzuki however don’t appear not to be so keen on Volkswagen’s expert technology within their vehicles. This was one of the major reasons as to why the Japanese firm wanted to secure the original partnership in the first place.
It has also been reported that they are also not as keen on remaining quiet as Volkswagen is, as quotes from Chief Executive Osamu Suzuki said in a statement. “I remain disappointed that we have not received what we were promised; if Volkswagen will not allow access it must return Suzuki’s shares.”
What now? Legal action?
With Suzuki adamant that they want the relationship disbanded and Volkswagen to keep hold of it is legal action a possibility? Will Suzuki take it that step further to get what they want? A spokesman from the company was quoted to have said they “may have to consider further action.”
It is difficult to predict what direction the two year partnership is heading towards. Although Volkswagen hopes to settle matters in private, the two companies appear to still want different things, meaning another dispute may erupt. Let’s hope that Volkswagen does get their way and that no more arguments are pursed in public.