Suzuki serves legal notice on Volkswagen

Suzuki serves legal notice on VW

It looked a promising alliance, Suzuki and Volkswagen.

VW wanted access to Suzuki’s know-how in emerging markets and Suzuki wanted access to VW’s technology, especially its hybrid stuff.

But, just like many promising marriages, Suzuki and VW have been handbags at dawn for a while.

VW took umbrage at Suzuki using Fiat engines for cars it was building in Hungary, but it seems that might have been because VW condescendingly intimated in note in its annual report this year that it could  “…significantly influence financial and operating policy decisions” st Suzuki.

Now, Suzuki has upped the argument by serving VW with legal notice about breaches of the agreement entered in to in 2009, at which time VW took a 20% stake in Suzuki.

Suzuki wants VW to either divvy up the technology it was promised when the agreement was reached or allow Suzuki to reclaim its shares. Suzuki boss,  Osamu Suzuki, said:

This capital alliance was intended to facilitate Suzuki’s access to VW’s core technologies. I remain disappointed that we have not received what we were promised.

If Volkswagen will not allow access it must return Suzuki’s shares.

VW has responded by saying it has complied with the agreement and was considering its options.

This looks likely to run and run.

By Cars UK