Suzuki breached partnership by buying Fiat engines: Volkswagen | Car Advice

Car Advice
  • Home
  • »  Suzuki breached partnership by buying Fiat engines: Volkswagen

Suzuki breached partnership by buying Fiat engines: Volkswagen

By Brett Davis |

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.”


 
  • AndyGF

    Suzuki just needed some VW ‘investment’… AKA loan. VW should sell their shares up asap, before investors get wind of this and all start pulling out too (oops too late).

    • asin

      VW needed suzuki’s network of dealership and knowledge in markets like India – where suzuki sold over 2millions cars last year compared to VW’s 53k cars. In turn suzuki needs a larger company to be able to get additional tech from.

      The style of management of both companies is probably the cause of this tension.

      • AndyGF

        Sugar coat it all you like asin, you should get something back when you LEND someone/something 2 point something billion dollars?

        Sounds like VW got nothing at all thus far? Chop off the dead wood I say…

        • Hung Low

          That “dead wood” as you put it is one of the only manufacturers to have never posted a loss since its started.
          As a Vdud fanboy you should know about the cross Polo based on the SX4 Awd chassis.
          VW gets its foot into the worlds largest small car markets with the small car know how of Suzuki/Maruti. That is building a profitable small car.
          What has Suzuki got form the VW partnership? They have had an alliance with Fiat for a while now and I am sure Bosch has been manipulated by the VAG group to licence their Direct Injection technology strictly to them which has probably left Suzuki out of the deal with forced induction. Its not like Suzuki lacks engine technology anyway with their ability to produce over 170hp/litre bike engines that are bullet proof and they have developed turbocharged engines before in their Kei class market.

          • AndyGF

            You talk such Bul….t Hung Low!

            Cross polo being a SX4 underneath… Never, there was speculation for a while that VW was planning to use the SX4 chassis for a similar varient of car, but NEVER has the POLO been a Suzuki Underneath!

            And about Bosch Direct Injection Technology…
            ‘ONLY’ in your mind does you lending someone 2.7 BILLION DOLLARS, mean that you now have to share you 20 BILLION DOLLAR direct injection technology with them. Heavens you must have been bullied a lot at school, you have no idea how the world works?

          • Golfschwein

            My favourite bit is when you were standing on your head writing that the new Up! is based on the Swift, when all the while, it’s VW’s own MQB architecture underneath.

            Wrong then and wrong now, but do it again anyway, cos it’s funny.

  • Anon

    LOL, in the picture on this article, it looks like the guy from Volkswagen is about to deck the guy from Suzuki,which is appropriate considering they’re the ones that breached the contract.

  • http://www.facebook.com/profile.php?id=1715760895 Charles Dean

    The Kizashi is better then anything out of VW so far.. And sells more then the PASSAT..

    • KD

      Do you know the difference between ‘then’ and ‘than’?

      It appears the answer is no!

      • dk

        No need to be bitter.

    • Phil

      On what planet does the Kizashi sell more than the PASSAT?

  • Shak

    The only reason Suzuki even bothered to breach this contract was because they really didn’t see much from the whole tie up either…

    • Jacob

      Still no excuse for a breach. Toyota own a bit of Suzuki as well, its just too much of a spaghetti situation.

      Can somebody please acquire 51% of Suzuki.

  • Grim reaper

    I agree, what has Suzuki got to lose?! VW are playing bully boy tactics because they have the power and Monet to do so.

    They are becoming true monopoly players, buy everyone and then make them do ad you ask. Makes ne just tune out to the whole VW message

    • Cf

      All Volkswagen or Volkswagen Group to be precise is pretty much every automaker of Europe combined.. The actual Volkswagen brand isn’t worth much..

  • Brake Job

    Settle this on track.

    Nobuhiro ‘Monster’ Tajima,in the Pikes Peak Suzuki Escudo

    vvvvvvvvvvvvvvvvv

    Bangel,in a loner polo,while his car is in for repairs(again!!!!).

  • 34WRC

    Get over it VW. You bought shares in Suzuki then shafted them by bringing in the budget version of the Polo to compete head to head. VW even trademarked the GTI Badge so no one else could use it. Try working with Suzuki to build reliable small cars rather than trying to go one better. Look at the simple technology in a Suzuki Sport instead of the techno nightmare that is the Polo Gti. And at least TRY to work with them on your WRC attempt. Personally I’d like to see Suzuki back in WRC in 2013 and kicking the Polo to the curb. That would show VW whos the better manufacturer. VW needs to share their technology or shut up about it when people go elsewhere…

    • Nick

      Wooooord. Suzuki have proven they can make great motors and compete in the wrc. Go it alone Suzuki, I’ll get beind you!

  • Car Fanatic

    Brea

  • Car Fanatic

    Breach of contract?

    Sue the pants off them.

    • Jacob

      They own 20% of Suzuki, so VW would be suing itself.

  • FrugalOne

    The truth is Suzuki prefer superior Italian engineering over german

    Fiat, the inventors of common-rail, and worlds first user of direct injection

    FIAT World Leaders in engineering, and Suzuki know it!

    • Phil

      What about Italian reliability?

      • Hung Low

        Almost as shocking as VW, your beloved JD Power tells me so!

        • Phil

          Hung Low, you are wrong yet again. I suggest you actually LOOK at JD Power before making a comment supposedly based on them.

          “J.D. Power 2010 UK Vehicle Ownership Study” (no Fiat in USA) tells me:

          11th = VW

          25th = Suzuki
          26th = Fiat

          Suzuki and Fiat are far, far more “shocking” than VW.

          • Hung Low

            Honestly Phil, I dont care for this humbug survey. Look at the Lemon Laws and customer complaints sites, or better yet speak to the blokes who work on these cars. The Italian brands are bad, so are the VW’s, Opels!

  • Z

    VW shucks. Leave Suzuki alone.

  • Z

    FIAT have been buying the Suzuki SX4 with the FIAT multijet engine since 2005. You don’t expose your conflict with your partner to the media. I bet Suzuki wanted to get out of the tie up with VW badly. Suzuki make more cars than Mazda. They don’t need VW and don’t want VW’s interference.

  • FrugalOne

    UPDATE

    i think the deal is over b4 it even started

    www ft com/cms/s/0/1ed60db4-dd11-11e0-b4f2-00144feabdc0.html#axzz1XjSUecoh

  • Marcelito

    It has just been reported in Japanese media that Suzuki had asked to dissolve the partnership. Apparently they never got access to the VW technology that they wanted. They want to buy their own shares back and hope VW will do the same .

    • Hung Low

      Screw VAG, Suzuki do not need them. I knew this deal was a bad idea from day one!

      • Hung High

        Why so angry at VAG? Perhaps you like to share your experience with the VAG? How do you know it was a bad idea from day one??? Ever consider that it was Suzuki who is at breach here???

  • Dave S

    I thought VAG, had shares in Suzuki – not ownership. No one said they were exclusive.

    Interesting to see someone stand up to VAG.

  • Jake Williams

    Lol I love it how Suzuki ditch VW and go with FIAT, one of the most unreliable automotive companies in history. The 1.4TSI (Fabia RS, Polo GTI etc) in the new Swift Sport would’ve been great!