Suzuki Denies Rumors It Has Resumed Talks With VW Regarding Dispute image

Suzuki Executive Vice President Toshihiro Suzuki denied rumors according to which the automaker has resumed talks with VW regarding a partnership deal dispute.

“There have been various reports, but there absolutely are no such facts, so there is nothing I can talk about on this topic,” said Toshihiro Suzuki.

Suzuki, which is the fourth largest automaker by sales in Japan, filed in 2011 for international arbitration in a long dispute with VW, after the German car maker refused to sell the 20% stake in Suzuki. VW has been accused of withholding hybrid powertrain technology which the automaker promised to share.

Suzuki also asked for the return of the 19.9% stake VW has purchased for almost 1.7 billion euro in January 2009. According to reports, the two parties have reached an agreement at the board level and saw the potential of continuing the cooperation. Still, it remains to be seen whether they will manage to fully solve the dispute.

Suzuki reported an operating profit of 44.1 billion yen ($448 million) for the second quarter, thanks to increased sales in Thailand and Indonesia which offset losses in India, which is the automaker’s largest market. Sales during this period dropped 10.2% due to a fall in popularity of the diesel-powered cars and the economic slowdown.

Source: Reuters