The partnership deal between Volkswagen and Suzuki is being put somewhat on hold due to an infringement on Suzuki’s part. The Japanese company bought engines from Fiat, breaching their contract deal, according to Volkswagen.
The partnership between Volkswagen and Suzuki has been going since 2009, but nothing has really eventuated from it. Volkswagen hasn’t come up with a Suzuki-based model or used the Japanese brand to tap into emerging markets like original planned. Also, Suzuki hasn’t been given any sort of welcoming to Volkswagen’s technology.
The two companies haven’t been talking with each other since around March this year. According to reports, Volkswagen is saying Suzuki breached the contract deal after it decided to purchase engines from Fiat in June this year. Volkswagen said in a recent statement,
“Suzuki has now been given a period of several weeks to remedy the infringement. Volkswagen considers this step regrettable, but necessary, and has offered to discuss the matter with Suzuki.”
A Volkswagen spokeswoman told Reuters recently that the infringement wouldn’t end the partnership between the two companies, saying that Volkswagen is still keen on continuing the alliance.
“We will have to see now how Suzuki reacts and then we will discuss the next steps to be taken.”