Posted on: Nov 21, 2011
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Corporate Divorce: Suzuki Ends Relationship with Volkswagen

After two years and nothing to show for it, Suzuki wants to end their alliance with Volkswagen.
We've known for some time that Suzuki hasn't been happy with their relationship with Volkswagen. For those who don't know, back in 2009, Suzuki and Volkswagen entered into a partnership where the latter bought a 19.9 percent interest in the small Japanese automaker. In return, Suzuki was given just a 1.49 percent stake in the German automaker giant. Although the numbers sound a little off, the idea was for Suzuki to have some access to various VW hybrid and other technologies.
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In return, VW wanted to tap into the highly profitable Asian and Indian markets, which Suzuki has had a solid foothold in for many years. At the time, it sounded like a good arrangement. However, things quickly went sour as Suzuki felt that its role in the partnership was not being taken seriously by VW. In truth, it wasn't and Suzuki began to look for another automaker who would be a better match, such as Fiat. After two years, nothing has come of the alliance and Suzuki is now stating their intent to end the agreement and for the return of their 19.9 percent stake through arbitration.

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