Volkswagen is reviewing its plans too cooperate with Suzuki, VW Chief Financial Officer Hans Dieter Poetsch said.
"The strategic cooperation is developing more slowly than expected and is not currently being implemented with the desired level of intensity," Poetsch said during a call with investors on Thursday, adding that the review is ongoing.
VW bought a stake of 19.9 percent in Suzuki for $2.5 billion in December 2009 in the hope of gaining access to small car technology and better access to the market in India, where Suzuki is the leading player. In return, Suzuki would have access to Volkswagen's hybrid and other advanced technologies that it would not be able to afford on its own.
Earlier this month, Suzuki Executive Vice President Yasuhito Harayama blamed the lack of progress of cooperation on Volkswagen's notion it could wield influence over Suzuki's management, saying the two companies needed to go back to the drawing board on their partnership.
Suzuki CEO Osamu Suzuki said in a blog, published on the Nikkei newspaper's online site that Suzuki had perused Volkswagen's technologies and "found nothing that it wanted right away."
Last month, Suzuki announced a deal to buy 1.6-liter diesel engines from Fiat S.p.A. for a car to be built in Hungary -- a deal that both Suzuki and Harayama said proved the automaker could do without Volkswagen.
Sources: Bloomberg and Reuters