Suzuki Motor Corp on Friday said that it wants to buy back its shares from VW Ag. after the Japanese automaker accused Volkswagen AG (VW) of violating a partnership agreement by not sharing technology, Reuters reports.
The Japanese automaker will hold a media briefing on the matter at 5 p.m.
“We are prepared to reach out to Suzuki. Returning our 20 percent stake is out of the question for VW,” Automobil Produktion reported on Thursday, citing Hans Demant, who is in charge of the alliance at Volkswagen.
Volkswagen acquired its Suzuki stake at the end of 2009 for roughly €1.7 billion ($2.36 billion). It hoped to benefit from Suzuki’s expertise in the important small-car segment and from its large presence in India.
According to the credit agency Moody’s, this dispute affects VW’s growth prospects in Asia and have a negative credit effect on Europe’s biggest carmaker.
“This likely end of the cooperation agreement is credit negative for Volkswagen, which aimed to strengthen its position in Asia through its agreement with Suzuki, and in particular India,” said Moody’s Senior Vice President Falk Frey in a report earlier this week.