Volkswagen Ag. no longer considers Suzuki an ‘associate’ – update image

Suzuki is no longer an “associate” of VW according to the German firms annual report.

In an interview with inautonews, Eric, a VW Ag. representative said:

Due to the economic cooperation agreed in the master agreement, Suzuki was classified as an associate until September 2011. The shares were measured using the equity method.

The precise allocation of the purchase price to the assets and liabilities of the Suzuki Motor Corpo¬ration was completed in the current fiscal year. No significant adjustment to the figures allocated in the previous year was required.

Following the notification by Suzuki dated September 13, 2011 that it intends to terminate its cooperation with Volkswagen, and because it is not clear at the present time whether any cooperation will be reestablished, Volkswagen is no longer in a position until further notice to exercise significant influence over Suzuki.

When asked if a total crack is possible, Felber said: Volkswagen will not be making any changes to its shareholding in Suzuki Motor Corp.

The discussion between both parties will be exclusively conducted internally. For that reason, Volkswagen will not comment on any further speculations.

VW and Suzuki formed a tie-up in December 2009 to bolster Volkswagen’s presence in India for small cars and give Suzuki access to latest hybrid and diesel technology.

But now, Suzuki is seeking to end its partnership with Volkswagen, which has accused the Japanese company of violating the cooperation agreement by purchasing engines from Fiat SpA.