TOKYO -- Suzuki Motor Corp. today said that it plans to end its capital and business alliance with Volkswagen.
Suzuki said it will ask VW to sell the Japanese carmaker's shares, saying the alliance has become negative for its management independence.
The announcement came after VW said on Sunday that Suzuki's decision to source diesel engines from Fiat S.p.A. infringed on the terms of their partnership.
VW owns 19.9 percent of Suzuki while Suzuki owns 1.49 percent of VW.
Suzuki said it plans to sell its VW shares if the German company agrees to the arrangement.
Suzuki decided to end its capital alliance with Volkswagen at an unscheduled board meeting today, the company said in a statement sent to the Tokyo Stock Exchange.
VW spokesman Michael Brendel said the German automaker has no intention of selling or reducing its stake in Suzuki. He said Suzuki has broken the partnership agreement between the two carmakers by deciding to buy engines from Fiat.
Volkswagen and Suzuki have been at odds since VW said in its annual report published in March that it could "significantly influence financial and operating policy decisions" at Suzuki, describing the Japanese company as an "associate."
