After the Saab saga, we now have a new automotive tale that is bound to capture our attention in the coming weeks or perhaps even months: the VW-Suzuki feud, with the former accusing its (supposed) partner of contract breach, and the latter responding in anger.
Although VW sources initially tried to downplay the issue after Osama Suzuki came out last Thursday accusing the German company of insulting his company’s honor and demanding a retraction, its “partner’s” response was only a matter of time.
“From Volkswagen’s perspective, every effort has been made from the start to continue the partnership” the German company stated. VW added that Suzuki’s letter to Martin Winterkorn was “theatrical” and that the Japanese carmaker has breached their contract by choosing Fiat for its diesel engines.
The Germans also repeated that they have no intention to sell their 19.9% stake in Suzuki despite its CEO demanding a “divorce from VW’s ball and chain”.
Analysts predict that the 20-month old agreement has reached a dead end: “I can’t conceive how this conflict can possibly be resolved.” commented Daniel Schwarz, an analyst at Frankfurt’s Commerzbank AG. “The chances are growing now that the partnership accord will be dissolved.”
Story source: Bloomberg
