A tiff that started over Volkswagen AG’s description of Suzuki Motor Corp. in its annual report has escalated into a spat threatening to unravel the two automakers’ planned alliance before the partnership ever gets going.
Suzuki Motor Corp., Japan’s second- largest maker of mini-cars, has “no plans” to set up joint production with Volkswagen AG in China, Suzuki Chairman and Chief Executive Officer Osamu Suzuki said today.
Maruti Suzuki India Ltd. , India’s biggest carmaker, posted an 18 percent drop in third-quarter profit as a stronger yen, higher royalty payments and increased raw material prices damped gains from record sales.
The “likely end” of Volkswagen AG’s alliance with Suzuki Motor Corp. is negative for the German automaker’s credit because it limits growth options in Asia, including India, Moody’s Investors Service said.
Suzuki Motor Corp. said it expects production at the Manesar, India, factory run by its local unit to recover to 800 cars a day this month after riots over a labor dispute in July caused its closure for a month.