Suzuki Motor Corporation said that it has terminated the partnership pact with Volkswagen AG after two years of unsuccessful attempts to gain access to technology from the German firm.

SMC also said it will seek return of its shares from the German auto conglomerate through arbitration.

In 2009, SMC and VW had signed a deal under which the German firm picked up 19.89% stake in the Japanese car maker for USD 2.5 billion. It included technology sharing agreement.

Mr Osamu Suzuki chairman and CEO of SMC in a statement said that "Today, Suzuki terminated the partnership with VW. Suzuki will be seeking the return of its shares from VW in arbitration. I am disappointed that we have to take this action but VW's actions have left us no choice.”

SMC alleged that VW did not allow it access to its core technology despite their agreement.

It added that "It also became clear that there were differences between Suzuki and Volkswagen in the understanding of 'independence'. Suzuki cannot therefore establish a relationship of mutual trust which is the basis for collaboration between the two parties.”

(Sourced from PTI)