Suzuki notifies Volkswagen of contract breach

Japanese automaker Suzuki says it has notified its tie-up partner Volkswagen that the German firm has violated their contract by not allowing Suzuki access to environmental technologies.

Suzuki Executive Vice President Yasuhito Harayama told reporters on Friday that his company had sent the notice earlier in the day.

Harayama said Volkswagen breached the contract by failing to provide Suzuki with important technologies for hybrid and other eco-friendly cars.

The 2 companies formed their capital tie-up in 2009 but talks on the details of the alliance made little progress.

Suzuki decided last month to dissolve the partnership after Volkswagen accused it of purchasing engines from another carmaker. Suzuki is calling on Volkswagen to end cross-shareholding, but the German company has so far shown no intention of terminating the alliance.

Friday, October 14, 2011 16:34 +0900 (JST)