[download2live]

Do not know where to post it. So here it goes.
Today in Hindu there was an article that Suzuki ended its relationship with VW.

The Hindu : Business / Companies : Suzuki cuts ties with Volkswagen

[asdon]

Originally Posted by download2live

Do not know where to post it. So here it goes.
Today in Hindu there was an article that Suzuki ended its relationship with VW.

The Hindu : Business / Companies : Suzuki cuts ties with Volkswagen

Its actually other way round in TOI, it say VW ended the pact, as they were unhappy that SUZUKI is in a deal with Fiat for Diesel engines. What wrong with VW now? they were dreaming that Suzuki will end the pact with Fiat(for our national engine) to get VW under the hood of MSIL?

[C300]

Originally Posted by asdon

Its actually other way round in TOI, it say VW ended the pact, as they were unhappy that SUZUKI is in a deal with Fiat for Diesel engines. What wrong with VW now? they were dreaming that Suzuki will end the pact with Fiat(for our national engine) to get VW under the hood of MSIL?

Just goes to show the importance of Indian market for Suzuki.

A quick question guys - Does this Suzuki-Fiat engine deal worldwide or its just for India?

[volkman10]

Seems the end to the VW-Suzuki alliance?

"We don't know how you say "Throw down the gauntlet" in Japanese, but Suzuki CEO Osamu Suzuki has apparently gone and done it. Claiming that his company's relationship with Volkswagen has the potential to become a "ball and chain" if it continues it current course, Suzuki apparently sees so little hope of remedy that he has suggested an amicable separation.

Suzuki is upset about a number of recent events, from VW's claim in its annual report that it could influence operational decisions at Suzuki, to VW's breach-of-contract accusations over Suzuki buying diesels from Fiat, to the fact that in two years there hasn't been a single joint project.

VW hasn't made any mention of walking away from the 'partnership,' instead repeatedly saying that it is reviewing the union. In sharper words, however, some VW execs have stressed that it is up to Suzuki to return to the relationship table and stop airing grievances to the press. And in an odd use of a press release, VW released the first findings of its review to announce its breach-of-contract process over the diesel situation.

Suzuki has had an engine deal with Fiat since 2005, and when Osamu Suzuki decided he didn't want VW's diesel tech, he saw no reason no to expand Suzuki's arrangement with Fiat. VW considers that a bit of double-dealing, whereas Suzuki sees tie-ups with other firms as his right. Having not read the fine print ourselves, we have no idea which firm has the defensible position. However, while the German firm still sees the Japanese concern – and its market position in countries like India – as an attractive investment still, we wonder how the growing and public kerfuffle is going to make things better. Or even sustainable."

http://www.autonews.com/apps/pbcs.dl...309129862/1198

[AdityaLN]

According to German magazine Der Spiegel, Volkswagen could make a move to take over Suzuki. Another war in cards.

VW can't rule out takeover of Suzuki - magazine | Reuters

[.sushilkumar]

Below is extract of the article and lines in BOLD caught my attnetion

- Volkswagen could make a move to take over Japan's Suzuki, German magazine Der Spiegel reported, citing an unnamed senior manager at VW.
"I do not rule out this possibility," the weekly quoted the person as saying on Sunday.
Volkswagen declined to comment on the matter.
Suzuki said on Monday it wanted to end its two-year alliance with VW after the German carmaker accused it of violating the pact by agreeing a diesel engine supply deal with Italy's Fiat.
Suzuki chairman and CEO Osamu Suzuki has offered to buy Volkswagen's 19.9 percent stake in his company with cash, but the German company has said it has no intention of selling.
VW, which has tried to patch things up since its relationship with the Japanese carmaker turned sour two months ago, has said it was happy with its investment in Suzuki.
According to Spiegel, VW cannot raise its stake in Suzuki without the Japanese company's consent as long as the alliance between the two companies is still in place. But if Suzuki cancels the partnership, VW would be free to stock up, it said.

Technically Alliance is more or less over. Legally they need to separate.

Just a curious question : - I found few statements of Mr Suzuki wrt to this alliance very egoistic in nature. He could have learn so much from VW. IMO Suzuki is over confident wrt to their Indian operations. India is only market where they are selling heavily but here also they will be in deep trouble some day since Indian customer is maturing and demanding every bang for it;s buck, where as they continue to launch few model facelifts with re-design bumpers and cosmetic things and without any major technical changes (swift being a anomaly but here also they killed the very DNA of swift ). I might be wrong here.

What was the need for him to go to press with his grievances Wrt to VW saying that they can influence Suzuki 's decision making?

At the End of day if 2 marriage partners are fighting , they sit together and strike out their difference rather than asking the neighbor to act as referee and decide which he has done

[AdityaLN]

The saga continues. Suzuki now hits back! It accuses VW of breach of contract by not allowing it to access VWs technology which was part of the contract.

Suzuki: VW breached pact by hiding technology | Reuters

[Bluengel180]

Originally Posted by AdityaLN

The saga continues. Suzuki now hits back! It accuses VW of breach of contract by not allowing it to access VWs technology which was part of the contract.

Suzuki: VW breached pact by hiding technology | Reuters

I see suzuki really screwing themselves here.Did they expect the alliance to be so one sided as to VW to let suzuki to have whatever it wants and not getting anything in return?

[anjan_c2007]

Suzuki has now served a legal notice to Volkswagen for breach of agreement.Suzuki says it was not made privy to technology as agreed under their $2.3 billion tie up. VW was supposed to provide access to its core technologies. If access is not allowed, VW must return Suzuki's 19.9 % shareholding, it says. VW denies any wrongdoing. Maybe the matter goes to a competent court now for adjudication.
Details on this link:
Suzuki accuses Volkswagen of breaching agreement - The Local

[volkman10]

VW plans to keep Suzuki stakes!

"Osamu Suzuki was publicly declaring his angst with the "ball-and-chain" union, proclaiming it needed to end and serving legal papers. Volkswagen, meanwhile, was saying little other than that it wanted to speak to its partner privately and was not ready for a divorce, in spite of previously serving its own legal papers.

It seems the word games have gotten a tad hotter. Volkswagen's mantra remains that it won't deal with the matter in public but that it has no intention of leaving. Suzuki, on the other hand, has said that since its primary purpose for the partnership – access to VW's "core technologies" – hasn't happened, it will eventually demand the return of its shares if nothing changes. And it "may have to consider further action" if VW doesn't turn a kind ear. We have a feeling this show, and its public drama, won't be canceled anytime soon."

http://http://online.wsj.com/article...237142644.html

[anjan_c2007]

Today Suzuki has announced that it has the end of the road as far as ties with VW matter.It would seek arbitration with a 3rd party if VW does not part with the 19.89 % stake it owns in Suzuki.This divorce was approved by the Suzuki Board today.
On the flip side VW sings out loud "All is Well" or "Alles ist gut" in German and says it wont part with the stake.
More here:
Suzuki cuts ties with Volkswagen - The Local

[rameshnanda]

I think that VW might finally invite a hostile take over bid. This war of words between two auto giants is turning out very interesting .

[anjan_c2007]

Originally Posted by anjan_c2007

.
On the flip side VW sings out loud "All is Well" or "Alles ist gut" in German and says it wont part with the stake.
More here:
Suzuki cuts ties with Volkswagen - The Local

Originally Posted by rameshnanda

I think that VW might finally invite a hostile take over bid. This war of words between two auto giants is turning out very interesting .

Suzuki is yelling " Es ist nicht alles gut. Scheidung Scheidung Scheidung!! in German which means, "All is not well, divorce divorce divorce"!!!

[ankurvirmani19]

VW Blocks Suzuki’s Efforts to Force End to Stalled Partnership

http://www.businessweek.com/news/201...rtnership.html

[andromeda]

http://mobile.bloomberg.com/news/201...n?category=%2F

Looks the messy divorce process has started. This marriage of convenience was created by VW primarily for the Indian marketshare. Will be interesting to see their status in the next 2 years when the arbitration goes on.