TOKYO (AP) - Suzuki Motor Corp. said Monday it will abort its alliance with Volkswagen AG, ending a marriage that never worked and eventually escalated into a public feud.
Suzuki's board of directors decided to dissolve its partnership and cross-shareholding relationship with the German automaker because of concerns that it would lose autonomy, it said in a statement. Volkswagen owns a 20 percent stake in Suzuki, while Suzuki holds about 1.5 percent of Volkswagen.
Suzuki said it will ask Volkswagen to unload its Suzuki shares and that it would do the same with its Volkswagen shares if the two reach agreement.
The automakers announced a promising partnership in 2009, establishing one of the world's biggest auto alliances. They said they would work together on product development, production and sales, with a focus on hybrid and electric cars.
Suzuki hoped to gain access to new technology to stay competitive. For Volkswagen, the alliance represented an opportunity to boost its footprint in emerging markets.
Suzuki holds nearly half the market share in India, while Volkswagen is strong in China, as well as South America and Europe.
But the two companies could not agree on projects or how the partnership would function on the ground.
Their relationship took a bad turn in March, when Volkswagen in its annual report described Suzuki as a "company over which Volkswagen AG has significant influence on financial and operating policy decisions."
Suzuki cited the comment in Monday's statement. It expressed fears of a "negative impact on Suzuki's autonomous decision-making in its operating policy."
It also said it could never gained the sort of access it wanted to Volkswagen's technology.
The frustration appears to be mutual.
Last week, Volkswagen accused Suzuki of violating the terms of its partnership by deciding to buy diesel engines from rival Fiat SpA. It gave Suzuki several weeks to address the issue.