It all started in December 2009 when VW bought 19.9% stake in Suzuki. The relationship was supposed to be mutually beneficial with VW getting access to Suzuki’s plethora of small car options and Suzuki getting access to VW’s advanced power trains and hybrids.
And then in June, Suzuki went ahead and announced it is sticking to its long time engine companion Fiat to supply 1.6 litre diesel engines for its Hungarian built SX4 crossover. This has not gone down well with VW which opines this is a violation of the partnership agreement. Displeasures had been exchanged openly by both the companies since with a Suzuki executive even calling the accusation a declaration of war.
It is evident that this relationship is strained but VW has suggested that they are open to discussions with Suzuki. Suzuki on the other hand is offering to buy back VW’s stake.
We will have to wait and see where this goes…