VW, Suzuki spat unresolved as deadline passes

A public feud between Volkswagen and Suzuki Motor remained unresolved on Friday as a deadline set by the Japanese automaker for its partner to retract what it called a defamatory accusation passed without the desired response.

Suzuki sent a letter to Volkswagen last week giving it until September 30 to publicly revoke a statement that Suzuki had violated a pact by signing a diesel engine deal with Italy’s Fiat, saying the claim had damaged its reputation. On Friday, Suzuki said it had received a response from the German automaker that was “not worth commenting on”, declining to disclose its content. It said it had not yet decided on the next course of action after having its request ignored.

[caption id=“attachment_96801” align=“alignleft” width=“380” caption=“Suzuki CEO Osamu Suzuki this month asked Volkswagen for a dissolution of their 21-month-old partnership because the German automaker had flouted their initial agreement to be equal partners. Reuters”]  [/caption]

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Suzuki spokesman Shigeyuki Yamamura said the company wanted to keep the content of the latest back-and-forth private, and that it simply wanted to let it be known that Volkswagen had honoured a request to respond by September 30.

Volkswagen also declined to reveal what it said in the emailed letter, but repeated its demand that Suzuki reverse the alleged breach of contract within several weeks.

Suzuki CEO Osamu Suzuki this month asked Volkswagen for a dissolution of their 21-month-old partnership because the German automaker had flouted their initial agreement to be equal partners.

Volkswagen has refused to sell back its 19.9 percent stake to Suzuki.

Reuters