Suzuki wants out of VW alliance

Suzuki's board of directors decided to dissolve its partnership and cross-shareholding relationship with the German automaker because of concerns that it would lose autonomy, it said in a statement. VWAG owns a 20% stake in Suzuki.

The two automakers announced a promising partnership in 2009, establishing one of the world's biggest auto alliances. They said they would work together on product development, production and sales, with a focus on hybrid and electric cars.

Suzuki hoped to gain access to new technology to remain competitive.

But the two companies could not agree on projects or how the partnership would function on the ground. Their relationship took a bad turn in March, when VWAG in its annual report described Suzuki as a "company over which Volkswagen has significant influence on financial and operating policy decisions."

Suzuki cited the comment in Monday's statement. It also said it could never gain the sort of access it wanted to Volkswagen's technology. The frustration appears to be mutual. 

Last week, Volkswagen accused Suzuki of violating the terms of its partnership by deciding to buy diesel engines from rival Fiat.