Volkswagen and Suzuki's colobration in Risk Stat

Frankfurt / TOKYO - Volkswagen of Germany was late on Friday to back his accusation as a strategic partner of Japan's Suzuki Motor breached its contracts with the public, and raged a bitter spat on a two-car makers.Osamu Suzuki CEO of the eponymous carmaker to sell its stake in VW is called for and end the partnership, which has been a millstone around his neck, claiming an error Volkswagen Suzuki's reputation. 

For its part, Volkswagen has made an unspecified number of weeks in order to improve the Suzuki, which he says is a breach of contract, after the Japanese company agreed to buy Fiat diesel engine with his Hungarian Esztergom factory. "It's like this big old West showdown. - This is a public drawing lines in the sands of time ... Now they have something so, because if they do they are going to look stupid," said IHS Global Insight automotive analyst Tim Urquhart. 

"I do not see what good it does if the company is stupid claims about what the union might be, or Suzuki about libel case," Urquhart added.Following are some possible outcomes. 

SUZUKI WINS - VW sells stake, exits PARTNERSHIP 

VW bought a 19.9 percent stake in Suzuki for around € 1.7 billion in January 2009. Now he had to sell at the market, this will mean the loss of investment. Suzuki to be willing to pay a premium just for practical implementation of the partnership behind it.The opportunities are slim, however. Excluding acquisitions, Volkswagen produces billions of euros in cash and a year after the investment is not an immediate need for additional liquidity, especially for such a low market interest rates. "They just keep financial investments at stake, and watch what they do with it ... Even if it only annoys them. They do not sell their stake in the damage," says London-based equity analyst. 

WINS VOLKSWAGEN - stop shop FIAT SUZUKI MOTORS 

Suzuki completes its purchase agreement with Fiat, which has been his partner for many years in Hungary, a move that is likely to trigger backlash from the side of Fiat. Two of the building Suzuki SX4 and Fiat Sedici Suzuki factory Esztergom.This a common architecture, it is unlikely. Suzuki From the point of view, the project was a disaster and it only wants to go to Volkswagen. 

Both branches of the EXTEND OLIVE EARN good will 

Both car makers can take steps to build confidence. Suzuki could agree to buy any VW engines, power units, which have a large factory in Gyoer, Hungary, not far from Esztergom.Volkswagen their part, can provide access to its trove of R & D of alternative energy sources, if possible, a area where Suzuki is struggling with the most more successful. Osamu Suzuki has clearly stated the main reason he joined the transaction was a transfer that never happened. 

Both lose 

Volkswagen has an interest in creating ice age, the relationship between the two that are likely to persist for a period of power Osamu Suzuki, Suzuki crisis, complete with bars, which can lead to cash. "Volkswagen is now able to sell the shares because it would require pressure from the return for shareholders," said Credit Suisse auto analyst Kunihiko Shiohara. "But in the end would either sell the shares or wait for Suzuki weakens to the point where it would not oppose the takeover," Shiohara added.

Suzuki refuses to return to Volkswagen in India and Southeast Asia, and treat it as a hostile investor is likely to expand its ties with rivals such as VW Fiat to achieve the benefits they hoped to get along with each maker.Since German car company is willing to back down and lose face, most likely, analysts see the impasse. "I imagine Fiat might take some pleasure from it all, because they have changed over beats with Volkswagen (Chairman Ferdinand) Piech repeated overtures Fiat, Alfa Romeo brand," said Frankfurt-based stock analyst. 

VOLKSWAGEN declared war 

Nuclear option that remains is downright hostile takeover bid for Suzuki. This is considered the most likely of all scenarios, because of hostile deals are very rare in Japan, and vehicle acquisition require full support from management and employees need to obtain synergies. "Volkswagen and could easily increase their share slightly to 25 percent, so that a blocking minority," said one analyst, decline to be named.