Suzuki ends partnership

November 2011

Suzuki has ended its partnership with fellow car manufacturer Volkswagen and is requesting it's 19.9 per cent share back.

The deal - which was agreed upon less than two years ago - failed to come up with any specific joint project, forcing the Japanese carmaker to provide a November 2012 deadline for the return of its stake. Chairman and chief executive officer Osamu Suzuki issued a statement on Friday (November 18) claiming that arbitration will be sought.

"I am disappointed that we have to take this action but VW's actions have left us with no choice," Mr Suzuki said.

"In the absence of VW's cooperation and given its failure to do what was agreed, there is no basis for the partnership to continue."

According to a Volkswagen statement, there is "no legal foundation whatsoever" for the Japanese manufacturer to back out of the agreement.

The deal was originally worth €1.7 billion (AU$2.3 billion) in 2009.

The initial partnership was one filled with potential - Suzuki was looking for Volkswagen's advice on hybrid technologies and other eco-friendly areas, while the German marque hoped to utilise Suzuki's success in developing small cars.