Suzuki broke partnership rules with VW by purchasing Fiat diesel engines

In December 2009, Volkswagen purchased 19.9 percent of Suzuki under a strategic cooperation. We’re pretty sure you’ve been reading some headlines that the relationship between the two automakers is starting to go sour.

Volkswagen released a statement today saying that after a review, Volkswagen found the Suzuki is guilty of infringement of the cooperation agreement concluded in December 2009.

“The notice concerning the infringement relates to the supply of diesel engines produced by another manufacturer to Suzuki,” Volkswagen said. The other manufacturer? Fiat SpA.

“Volkswagen takes the view that this contradicts the terms of the cooperation agreement,” the German automaker said. “Suzuki has now been given a period of several weeks to remedy the infringement. Volkswagen considers this step regrettable, but necessary, and has offered to discuss the matter with Suzuki. At the same time, the company stresses it still regards Suzuki as an attractive investment.”

Also see – 2012 Maruti SX4 might get new 1.4ltr Petrol & 1.6ltr Diesel under the hood