ID :
206699
Mon, 09/12/2011 - 18:37
Auther :
Shortlink :
https://oananews.org//node/206699
The shortlink copeid
Suzuki decides to dissolve capital partnership with Volkswagen
TOKYO, Sept. 12 Kyodo -
Suzuki Motor Corp. said Monday it has decided to dissolve its nearly two-year capital partnership with Germany's Volkswagen AG, saying that continuing the relationship could undermine the Japanese automaker's independence.
Suzuki plans to ask the German automaker to sell its 19.9 percent shareholding in Suzuki, but whether negotiations over terminating the tie-up will proceed smoothly is unclear.
Through the tie-up concluded in December 2009, the two automakers intended to enhance their competitiveness amid intensifying competition in the global auto industry, but Suzuki has increasingly protested against Volkswagen's move to increase its involvement in Suzuki's management.
The automakers hoped to complement each other with Volkswagen providing Suzuki with environmentally friendly technology for hybrid cars and diesel engines, and Suzuki supplying its partner with low-priced small cars.
But the two automakers failed to produce specific achievements during the nearly two years of their capital alliance.
Suzuki said it realized it would be difficult for the automaker to receive technology transfers at the same or higher level as Volkswagen Group companies, in which the German automaker has nearly 100 percent of voting rights in contrast with its minor equity participation in Suzuki.
Osamu Suzuki, chairman and president of the Japanese automaker, said Monday he believed Volkswagen accepted at first that the two automakers would be equal partners and Suzuki would remain independent. But it had become apparent their views had started to conflict.
''It has come to the point where the situation could be an impediment to Suzuki's management if we leave it untouched,'' he said.
''Fortunately, there are no projects which are in progress. It is very easy'' to terminate the relationship, he said. ''I think the biggest challenge is what to do with the shares that are held by each company.''
In the field of green technology, which Suzuki aimed to develop through the tie-up with the German automaker, Suzuki said it would now accelerate efforts to develop its own technology.
According to German news agency DPA, Volkswagen's spokesperson said that the automaker will continue to hold Suzuki shares and is interested in cooperating with the automaker.
Suzuki was displeased with the German automaker for stating in an annual report released in March that it could significantly influence financial and management policy decisions at the Japanese automaker.
Their ties deteriorated further after the German partner said Sunday that Suzuki had violated the terms of their alliance by forging a deal in June with Fiat SpA to have the Italian auto giant supply Suzuki with diesel engines.
Suzuki objected to Volkswagen's statement, saying the issue has already been resolved between top officials of the two companies.
Suzuki Motor Corp. said Monday it has decided to dissolve its nearly two-year capital partnership with Germany's Volkswagen AG, saying that continuing the relationship could undermine the Japanese automaker's independence.
Suzuki plans to ask the German automaker to sell its 19.9 percent shareholding in Suzuki, but whether negotiations over terminating the tie-up will proceed smoothly is unclear.
Through the tie-up concluded in December 2009, the two automakers intended to enhance their competitiveness amid intensifying competition in the global auto industry, but Suzuki has increasingly protested against Volkswagen's move to increase its involvement in Suzuki's management.
The automakers hoped to complement each other with Volkswagen providing Suzuki with environmentally friendly technology for hybrid cars and diesel engines, and Suzuki supplying its partner with low-priced small cars.
But the two automakers failed to produce specific achievements during the nearly two years of their capital alliance.
Suzuki said it realized it would be difficult for the automaker to receive technology transfers at the same or higher level as Volkswagen Group companies, in which the German automaker has nearly 100 percent of voting rights in contrast with its minor equity participation in Suzuki.
Osamu Suzuki, chairman and president of the Japanese automaker, said Monday he believed Volkswagen accepted at first that the two automakers would be equal partners and Suzuki would remain independent. But it had become apparent their views had started to conflict.
''It has come to the point where the situation could be an impediment to Suzuki's management if we leave it untouched,'' he said.
''Fortunately, there are no projects which are in progress. It is very easy'' to terminate the relationship, he said. ''I think the biggest challenge is what to do with the shares that are held by each company.''
In the field of green technology, which Suzuki aimed to develop through the tie-up with the German automaker, Suzuki said it would now accelerate efforts to develop its own technology.
According to German news agency DPA, Volkswagen's spokesperson said that the automaker will continue to hold Suzuki shares and is interested in cooperating with the automaker.
Suzuki was displeased with the German automaker for stating in an annual report released in March that it could significantly influence financial and management policy decisions at the Japanese automaker.
Their ties deteriorated further after the German partner said Sunday that Suzuki had violated the terms of their alliance by forging a deal in June with Fiat SpA to have the Italian auto giant supply Suzuki with diesel engines.
Suzuki objected to Volkswagen's statement, saying the issue has already been resolved between top officials of the two companies.
