Suzuki & Volkswagen Currently In A Mexican Standoff

William Maley - Editor/Reporter - CheersandGears.com

September 6, 2011

Back in 2009, Volkswagen took a 20% stake in Suzuki to create an alliance between. Volkswagen would get access to Suzuki's knowledge on small vehicles and Suzuki would be able to get Volkswagen's diesel, hybrid, and electric powertrain technologies. Since then, the only thing that has been going on between the two is fighting.

Earlier in the year, the two companies said cultural differences were the reason why the two companies haven't made any headway and the alliance is still on.

Now, it looks like the two companies are having a Mexican Standoff. Neither company is talking to each other.

“Volkswagen is not talking to us. We have no plans to talk to them,” said Osamu Suzuki, Suzuki's chairman.

The non-talking began back in March when Volkswagen released their annual report. Volkswagen referred to Suzuki as an “associate” in the report. Also, Volkswagen said in the report that it could “significantly influence financial and operating policy decisions” at Suzuki. Suzuki wasn't impressed with the report, thinking the partnership was intended to be of equals. Since then, Suzuki's chairman has said to the Japanese press that he hasn't found any VW powertrains that he wanted in his vehicles. Instead, Suzuki announced they would purchase diesel engines from Fiat, and was open on creating alliances with other automakers.

Volkswagen still believes there is hope for the partnership, even though they're not exactly pleased with Suzuki. VW Chief Financial Officer Hans Dieter Poetsch said on a conference call on July 28, the partnership is "under review"

Source: Bloomberg

lol....really not sure why they ended up in bed to start with.

that must explain why none of the product is getting updated

Suzuki wants divorce