The alliance between the two companies began in 2009. Volkswagen Group bought a 19.89% stake in Suzuki and in turn, Suzuki acquired 1.49% of Volkswagen. The alliance was originally intended for Volkswagen to expand in India where Suzuki has experience and sales success. On top of that, Volkswagen will give Suzuki access to its core technologies; technologies which the Japanese automaker could not afford to develop on its own.
Suzuki Motors allegedly replied that they were not given full access to Volkswagen’s technologies and had to rely on Fiat for their diesel engines. Suzuki also mentioned that other than Volkswagen not giving them access to their technologies, there was also a clear difference in “understanding of independence between the two companies.” “The cross-shareholding partnership must be dissolved immediately and only then the two parties will return to their independent status.”
Volkswagen has not said anything yet about this issue and it is clear that this is far from over.
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