Volkswagen & Suzuki in contract spat over engine deal
LONDON. September 12. KAZINFORM The German carmaker Volkswagen has accused its Japanese partner Suzuki of breaking the terms of their co-operation agreement; Kazinform refers to BBC.
Volkswagen said Suzuki's deal to source diesel engines from Italian carmaker Fiat was a contractual breach.
The Japanese carmaker had picked Fiat to supply engines for its Hungarian-built SX4 crossover.
Volkswagen bought a 19.9% stake in Suzuki for 1.7bn Euros ($2.3bn; £1.4bn) in December 2009.
"Volkswagen considers this step regrettable, but necessary, and has offered to discuss the matter with Suzuki," the German carmaker said.
Suuzki, however, has denied that it breached the agreement.
"We can affirm that we have not breached the contract," Suzuki spokesman Hideki Taguchi said; Kazinform cites BBC.
To learn more go to www.bbc.co.uk