The Japanese auto giant Suzuki will seek to dissolve its 20 month odd partnership with largest European car maker Volkswagen as the tie-up has failed to yield the desired results. The decision from Volkswagen’s side came after its heavy investment of 222.5 billion yen ($2.9 billion) failed to yield to even a single project. Volkswagen currently has 19.9% stake in Suzuki, which it had acquired in December 2009. On the other hand, Japanese auto giant Suzuki plans to sell 1.49 % stake of Volkswagen it acquired during the tie-up.
According to a statement given by company’s Chairman Osamu Suzuki on Monday in Tokyo, Suzuki will seek to end the tie-up with Volkswagen even if European auto giant wants to maintain it. Reverting to the Suzuki’s statement, Volkswagen said on Monday that it has no plans to dissolve its alliance with Japanese auto giant. According to Volkswagen spokesman, Michael Brendel, the firm has no intention of selling or reducing its stake in Suzuki.
As per a statement given by Mr. Suzuki, "The relationship is like a marriage and a divorce. We should just have a simple break up with a smile and say we weren't meant for each other."
According to the recent media reports, the trouble in the relationship started after Volkswagen described Suzuki as an associate in its annual report. Also, VW entering into a collaboration with Fiat further soured the relation.
