Volkswagen and Suzuki are having a feud over words and looks like things are getting dirtier. The companies had signed a pact in 2009 wherein Volkswagen would provide Suzuki with Hybrid and Electric car technology but till date the joint venture is yet to start working with each other. With India being a young and potential market both Volkswagen and Suzuki, the companies are trying hard to sell more cars. Volkswagen shares have gained 64% since the partnership was announced on 9th December, 2009, valuing the Germany-based carmaker at $65 billion. Suzuki has dropped 33%, giving the Japanese company a market capitalisation of $11.2 billion.
The whole tiff started over by over Volkswagen AG’s description of Suzuki Motor Corp in its annual report has escalated into a spat threatening to loosen the two automakers’ planned alliance before the partnership ever gets going. Osamu Suzuki, Chairman of Suzuki said that “Volkswagen is not talking to us and we have no plans to talk to them”. He also added that he did not find any Volkswagen technologies he’d like to adopt following an extensive review of what they have to offer.
