Japan's Suzuki cancels partnership with Volkswagen

12th September 2011, Comments 0 comments

Japanese automaker Suzuki on Monday said it had decided to end its capital and business partnership with Germany's Volkswagen following disagreements between both sides.

Volkswagen's purchase of a 19.9-percent stake in Suzuki in December 2009 had been seen as an opportunity for both carmakers to benefit from their respective strengths in hybrid and small-car technologies.

However, the 1.7 billion euro ($2.3 billion) alliance turned sour, with Suzuki complaining that its autonomy was being jeopardised and that it was being treated like a subsidiary by Volkswagen.

Suzuki shares closed down 2.75 percent at 1,484 yen.

© 2011 AFP

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