Friday, 18 November 2011

Terminated partnership with Volkswagen : Suzuki Chairman

Suzuki Motor Corp said on Friday it plans to buy back up to 20 per cent of its own shares by Nov. 16 next year, contingent on Volkswagen releasing them, marking the latest move in a spat between the two automakers.

Suzuki Chairman, Osamu Suzuki said that the company has terminated its partnership with Volkswagen. "There is no basis for a partnership with Volkswagen", he said.

Suzuki has been seeking a breakup of their two-year-old alliance because it is unhappy with what it says is the German automaker's failure to treat it as an equal partner. In September served VW with a notice of breach of contract, accusing its top shareholder of withholding hybrid technology.

If Volkswagen does not release the shares to Suzuki or to a third party specified by Suzuki, the Japanese carmaker said it will seek mediation


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