BERLIN, July 23: Japanese automaker Suzuki is getting increasingly frustrated with its larger partner Volkswagen and is eyeing deeper ties with Italian giant Fiat, German media said on Saturday.
“The cooperation with Fiat has been going well in a climate of mutual trust for years,” a senior Suzuki executive told the Automobilwoche weekly.
“It is perfectly imaginable that a strengthened partnership would be beneficial to both parties,” he said. “On the other hand, our cooperation with Volkswagen is still being reviewed.”
Volkswagen’s purchase of a 19.9 per cent stake in Suzuki in December 2009 had been seen as an opportunity for both carmakers to benefit from each other’s strengths, in hybrid and small-car technologies, respectively.
However, the 2.5-billion-dollar alliance (1.7 billion euros) turned sour, with Suzuki complaining that its autonomy was being jeopardised and that it was being treated like a subsidiary by Volkswagen.
Hans Demant, in charge of international cooperation at Volkswagen, stressed that both automakers were “two independent companies with different economic models.” “As a result, cooperation should be developed with caution.
It is unfortunately taking a little longer than what had been initially planned,” he told Automobilwoche.In May this year, Italian daily Corriere della Sera had reported a secret meeting in Italy between Fiat and Suzuki executives.—AFP
Suzuki upset with VW, mulls turning to Fiat | Business | DAWN.COM
