"Suzuki plans to ask the German automaker to sell its 19.9 per cent shareholding in Suzuki, but whether negotiations over terminating the tie-up will proceed smoothly is unclear," Kyodo News said in a report.
In December 2009, Volkswagen had picked up 19.9 per cent stake in Suzuki Motor Corp (SMC) for about USD 2.5 billion, with an aim to forge partnership that would also allow the automakers to pool management resources, share parts to cut down production costs and join forces in developing the next generation of fuel-efficient cars.
Yet, the two partners have been unable to make much progress, although they had explored possibilities of synergising operations in India, mainly on sharing models in small cars and diesel engine technology.
Suzuki has increasingly protested against Volkswagen's move to increase its involvement in its management.
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