Suzuki Motor Corp. on Friday accused Volkswagen AG of violating a partnership agreement by not sharing technology. The company is seeking “remedies” from Volkswagen or a return of its shares.
“This capital alliance was intended to facilitate Suzuki’s access to VW’s core technologies,” Suzuki’s Chairman Osamu Suzuki said in the statement. “I remain disappointed that we have not received what we were promised. If VW will not allow access, it must return Suzuki’s shares.”
However, when asked by inautonews about the allegations VW’s representative Eric Felber said:
“We are at a complete loss to understand why such action has been taken and consider the accusation leveled by Suzuki to be unfounded since Volkswagen has always respected the agreements that are in place. From the outset Volkswagen has done everything possible to make the partnership a success.”
“We are considering all alternatives and will decide on how to proceed once these options have been reviewed.”
“We also categorically reject these accusations.”
On the same time, the Wolfsburg based automaker served notice against Suzuki of an infringement of the cooperation agreement on September 11. This related to the supply of diesel engines to Suzuki produced by another manufacturer.
“Volkswagen views this as contradictory to the cooperation agreement terms, and therefore gave Suzuki a period of several weeks to remedy the infringement. Such remedy has not yet been forthcoming.”
Suzuki’s shares fell 0.2 percent to 1,656 yen as of the 3 p.m. close of Tokyo trading, while the benchmark Nikkei 225 Stock Average dropped 0.9 percent.
Volkswagen currently holds 19.9 per cent of Suzuki’s outstanding shares.