VW puts on brave face after Suzuki files for divorce

FRANKFURT: Volkswagen put on a brave face after Japanese partners Suzuki asked for a divorce on Monday.

"There will always be talks," VW Chief Executive Martin Winterkorn said on the eve of the Frankfurt Auto Show when asked whether the partnership was over.

Volkswagen chairman Ferdinand Piech, who played an active role in initiating contact between Suzuki and Europe's largest auto maker, said it was now up to VW's managers to see whether the alliance could be revived.

"That's for the operational guys to decide, not the supervisory board chairman," he said.

VW shows no sign so far of wanting to give up its 19.9 percent stake in the Japanese company despite Suzuki's offer to buy back the stake.

"We are pleased with our investment," said Volkswagen Chief Financial Officer Hans-Dieter Poetsch, adding that as far as VW is concerned the ball is now in Suzuki's court.

"Suzuki has not stuck to the agrement. We have pointed this out to them and now it is up to Suzuki to react. The contract did not say that you communicate via the press that you don't want to continue the partnership."

Copyright Reuters, 2011