The alliance between Suzuki and Volkswagen is ending in acrimony, with the Japanese company demanding VW sell their just shy of 20% stake, which was purchased as part of a strategic deal two years ago.
Osuamu Suzuki, Suzuki’s 81 year old chairman, has been reported as saying “We asked for a divorce, there is no longer any purpose (to the shareholding).” This followed accusations by VW that Suzuki had violated the agreement by signing a diesel engine supply deal with Fiat.
VW has stated it does not want to sell the Suzuki shares and that there is “no way” Suzuki can force them to do so. German newspaper Der Speigel has put in print that a ‘senior VW executive’ did not rule out the possibility of a full takeover of Suzuki. While the partnership is still in effect, this is not possible. But if Suzuki does force the end of the relationship, this would open the doors for VW to effect a takeover move. But it is felt Japanese companies would rally to Suzuki’s cause to fight off what would be considered a hostile foreign bid.
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