Suzuki bids to end VW tie-up
* Suzuki wants out of alliance with VW * Says its independence is being affected * Deal signed only two years ago...
Suzuki says it plans to end its alliance with Volkwagen.
The car makers had signed a deal in December 2009, under which it was expected that VW would gain from Suzuki's dominance in India. Suzuki, meanwhile, would benefit from Volkswagen's global reach and its technology including engine technology, hybrids and electric cars.
However, Suzuki announced its decision to sell its 1.49% stake in Volkswagen today, saying the alliance had become 'negative for its management independence'.
In March, VW said in its annual report that it could 'significantly influence financial and operating policy decisions' at Suzuki. VW owns 19.9% of Suzuki.
Suzuki would need Volkswagen's permission to sell its stake.
VW says it has no intention of selling its Suzuki stake.