Suzuki Seeks Divorce from Volkswagen

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With little surprise to many in the industry, Suzuki has announced they want to end their two-year long relationship with Volkswagen.

The relationship seemed unusual from the get-go. In fact, many were surprised the two hit it off in the first place. And like many relationships, there are some disagreements that simply can't be worked out. After a two-year partnership, Suzuki has officially announced that its board has decided to try to find its way out of a deal that gave Volkswagen nearly a 20 percent stake in their company. In return, Suzuki holds roughly 1.5 percent of VW.

Suzuki made the announcement just one day after VW accused the small Japanese automaker of violating their business agreement when the latter inked a deal to buy diesel engines from Fiat. However, VW stated at the time they had no plans to sell their Suzuki stake. But that was yesterday. So how did the two find each other in the first place? Back in 2009, Suzuki was interested in hooking up with VW in order to advance their development of green technology. This was done after GM ended their long-term relationship due to their severe financial problems.

VW was interested in Suzuki due to their goal of becoming the world's largest automaker by 2018. Suzuki could help them with smaller cars and better access to the Asian market, specifically in India where they're the biggest seller of passenger cars. Up until the announcement today, the two companies reportedly weren't talking much, so this news shouldn't come as much of a surprise to anyone. What will be interesting, however, is whether there's a budding future relationship between Suzuki and Fiat, VW's great European-based rival.

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