BERLIN -- Volkswagen AG said Suzuki Motor Corp. broke the rules of the two carmakers' contract agreement by agreeing to purchase engines from Fiat S.p.A.
"Suzuki has now been given a period of several weeks to remedy the infringement," VW said in a statement today. "Volkswagen considers this step regrettable, but necessary, and has offered to discuss the matter with Suzuki."
VW and Suzuki have been at odds since March when VW said in its annual report that it could "significantly influence financial and operating policy decisions" at Suzuki, describing the Japanese company as an "associate."
Suzuki in June decided in to buy diesel motors from Italy's Fiat for cars built in Hungary.