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Report: Suzuki terminates deal with VW, wants its shares back

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    Report: Suzuki terminates deal with VW, wants its shares back

    Filed under: Etc., Europe, Japan, Plants/Manufacturing, Technology, Suzuki, Volkswagen

    After two years, Suzuki has finally moved to sever its partnership with Volkswagen. The Japanese automaker claims that Volkswagen has blocked the company's attempts to access core technology as part of the original agreement, and that the two had issues seeing eye to eye on Suzuki independence. Suzuki also claims that Volkswagen has refused to resolve these issues through negotiation.

    Volkswagen, meanwhile, hasn't commented on the situation. This move is just the latest in the long-running drama between the two automakers. Just last month, Suzuki filed a notice of breach urging Volkswagen to take remedial action in order to be within the bounds of the original agreement. Volkswagen has been characteristically tight-lipped about whatever turmoil has brewed between the two companies, preferring to reiterate that it is committed to the union.

    As part of the announcement, Suzuki said that it seeks the return of the 19.89 percent stake that Volkswagen currently owns in the Japanese automaker through arbitration. Volkswagen purchased the shares for $2.5 billion in 2009.Suzuki terminates deal with VW, wants its shares back originally appeared on Autoblog on Sun, 20 Nov 2011 16:03:00 EST. Please see our terms for use of feeds.
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