Interesting.... did not see this one coming....
Things are not going well between Volkswagen and Suzuki. In 2009, Volkswagen invested $2.5 billion for a 19.9 percent share in Suzuki. Suzuki sent $1.13 billion back and bought 2.5 percent of Volkswagen. Suzuki netted $1.37 billion, domo arigatou gozaimasu, but then nothing happened. End of last year, Ferdinand Piech became impatient. Volkswagen stockholders asked discomforting questions at the annual meeting. Now, it turned into a war of the words. Volkswagen uses old media. The octogenarian Osamu Suzuki drops a massive blog bomb on Wolfsburg.
A month ago, Volkswagen leaked to Der Spiegel that the German-Nipponese axis is “a big disappointment.” Old prejudices were unearthed. “Suzuki wants as much modern technology as possible from Volkswagen, but is not willing to reciprocate,” wrote Der Spiegel after an obvious (but unsaid) tête-à-tête with Martin Winterkorn, who allegedly said that “the Japanese still need some training in proper cooperation.”
Now, Osamu Suzuki fires back. He could have summoned a few trusted Japanese journos and dropped some deniable off-the-record remarks. He did not. He sat down and wrote a blog that was published in The Nikkei [sub] in the Japanese language. Suzuki uses strong language:
•“Since the companies differ in size, people of Volkswagen may develop a mistaken impression that Suzuki is placed under their umbrella.”
•“The initial basic agreement seems to falter.”
•“We learnt about Volkswagen’s technologies, but we did not find any one of them interesting enough to adopt immediately.”
•“If we are short of any technology, we have an option to ask other companies with which we benefit from technological exchanges.”
Oddly enough, the piece never made it to the English wire of The Nikkei, and a Google search tells me that it was only circulated in Japan. Here is what I believe is a faithful translation from the Japanese, uncut.
“Blog by Osamu Suzuki
Present and future of cooperation between Suzuki and Volkswagen
It has been one and a half years since Suzuki signed a partnership with Volkswagen in December 2009. Many people criticized us for being unable to announce any specific fruit of the cooperation. Let me summarize what I have in my mind.
Lately, people of Volkswagen are telling their shareholders that Volkswagen can largely influence the corporate policy of Suzuki. I feel somewhat uncomfortable with the statement because the two companies agreed to remain independent partners on an equal footing when we signed the partnership in the first place. Since the companies differ in size, people of Volkswagen may develop a mistaken impression that Suzuki is placed under their umbrella. However, Suzuki signed the agreement under the condition of being an equal partner. Thus we cannot simply accept this notion. The two companies have been having a lot of exchanges. We learnt more about Volkswagen. I assume that Volkswagen gradually developed understanding about Suzuki. As a result, the initial basic agreement seems to falter.
Does Suzuki face an immediate difficulty? The answer is “Not at all.” We learnt about Volkswagen’s technologies, but we did not find any one of them interesting enough to adopt immediately. Suzuki is working on its own green technologies. Our engineers are gaining more capabilities than I expected, and are developing surprisingly good technologies. For example, our new minicar engine that was developed for the first time after 16 years enjoys class-leading fuel efficiency in Japan. We are producing more than 200,000 units of our diesel engine, which is attracting a lot of attention, in India. Thus for the time being, particularly in critical markets like the minicar market and India, we are not in a hurry to collaborate with Volkswagen. Suzuki is also working on eco-friendly cars. One example is our original EV equipped with a standby generator, which is under development for commercialization.
If we are short of any technology, we have an option to ask other companies with which we benefit from technological exchanges. Supply of diesel engine from Fiat that was announced the other day is one example. Technology race intensifies in the auto industry. The scheme of capital participation to take control of another carmaker will no longer work. We need to remain independent to be perceived as an attractive partner by other automakers around the world. According to a recent report by a major German business magazine, Volkswagen seems to gain visibility of developing low-priced cars for emerging markets such as South America and India. I am relieved.
I assume that many of you are interested in what would happen to Suzuki’s relationship with Volkswagen. We intend to continue having dialogues in all sincerity with our partner in order to build a relationship of equality. After all, this has been the purpose of joining hands with Volkswagen. I will do my utmost to develop Suzuki into an independent and distinctive company, and measure up to our shareholders’ and users’ expectations.
I am increasingly excited in face of many challenges. Recovery from the earthquake is urgent. We have to do it NOW. I am certainly older, but I am ready to continue working hard with the employees of Suzuki.”
Source;
http://www.thetruthaboutcars.com/2011/07/osamo-suzuki-blog-bombs-volkswagen/#more-401798
The Suzuki XL-7 is Suzuki's mid-sized SUV, launched in 1998.The first-generation XL-7 was a Suzuki design and was essentially a stretched Grand Vitara. It had a Suzuki-designed 2.7 liter V6 on a rear wheel drive-based platform with optional four wheel drive. When introduced, the XL-7 was the least expensive SUV available with 3-row seating in North America. The Suzuki XL-7 sold over 20,000 a year, and was awarded the Consumer's Digest Best Buy award. However, sales slowed as competitors came out with SUVs with more features, lower prices, better fuel efficiency and more powerful engines, such as the Toyota Highlander, the Honda Pilot, and the Honda CR-V.A unique trait in the U.S. market in this segment, the XL-7 was available with 5-speed manual transmission, in both 5-person and 7-person variants. Introduced in the fourth quarter of 2006, Suzuki partnered with General Motors to build the 2007 model, now called XL7 (without the hyphen). It uses the same unibody platform and many of the same components as the Chevy Equinox, Pontiac Torrent and Saturn Vue, but incorporates third row seating exclusive to the Suzuki. The second generation model uses a version of the GM High Feature engine, built in Japan and shipped to CAMI Automotive in Ingersoll, Ontario, Canada, where the XL7 is assembled with the Equinox and Torrent, and also the second-generation Suzuki XL7 is Suzuki's first entry in the crossover SUV segment. Styling cues on the 2007 include a chrome slotted grille and trapezoidal headlights.In May 2009, Suzuki halted production of the XL7 indefinitely due to low demand. Through May 10, 2009, CAMI Automotive Inc. had only produced four XL7s for Suzuki after producing more than 12,000 units last year.
The all-new XL7 was designed to blend SUV versatility and safety with increased driver and passenger comfort," said Koji Yamada, chief engineer, XL7. "The XL7 not only offers the cargo and seating flexibility for all aspects of a consumer's active lifestyle, but performance capabilities and safety features that give them the confidence of being in control. The all-new 2007 Suzuki XL7 evolves from a rear-wheel-drive, truck chassis SUV into a crossover SUV based on the sophisticated GM Theta platform with full-length underbody rails for added strength. The XL7 is now a front-wheel-drive vehicle that features four-wheel independent suspension and available all-wheel drive. The standard powertrain for the Suzuki XL7 is a GM-designed, Suzuki-built 3.6-liter, V6 DOHC engine rated at an estimated 250 hp with 243 lb-ft of torque. The XL7's 3.6-liter, High Feature (HF) engine with variable valve timing will be built under license by Suzuki in Japan using Suzuki engine-building technology at the Sagara engine plant. The XL7 engine was developed as a joint effort between Suzuki and GM engineering and features unique Engine Control Unit (ECU) calibration. The use of the existing platform architecture accelerated the completion of the vehicle, which has been in development for three years. The 3.6-liter, six-cylinder, DOHC engine is matched to a five-speed automatic transmission that features a manual-shifting (manumatic) mode. Although the new engine is nearly one liter larger than the 2.7-liter engine used in the previous XL-7, the new, larger XL7 was designed to deliver fuel economy equal to or better than its predecessor. EPA fuel economy estimates are 18 mpg/city and 24 mpg/highway for front-wheel-drive variants and 17 mpg/city and 23 mpg/highway for all-wheel drive. Towing capacity is rated at 3,500 pounds.
The sophisticated chassis delivers nimble, car-like ride and comfort whether driving on the highway, city streets or rural roads. The XL7's responsive road manners communicate a sense of confidence and control in virtually every driving scenario, while still providing refined Noise, Vibration and Harshness (NVH) performance at or near the top of the midsize SUV category. The XL7 features four-wheel independent suspension with MacPherson struts in the front and a multilink design in the rear. The independent rear suspension is fitted with hydraulic shock absorbers in the five-passenger configuration and Nivomat self-leveling rear shock absorbers when configured for the available seven-passenger design. The all-new XL7 is fitted with a true dual exhaust system, constructed of durable, long-lasting stainless steel. The system was designed for quiet, refined exhaust tones to achieve "best in class" NVH in terms of quietness and tonal quality. The exhaust system features two downpipes, two catalytic converters, a center muffler, two side mufflers and two 3.5-inch diameter exhaust tips.The XL7's safety features start with the body structure itself -- a combination of computer-designed high-strength, dual-phase and galvanized steels. The body structure is computer-designed to manage loads -- to effectively transfer energy absorbed during impacts around the interior compartment and occupants -- in both front and rear crashes.The unibody construction is a high-strength steel structure, incorporating full-length frame rails and a safety cage in the middle into a single, welded unit. It also is designed with front and rear crush zones engineered to collapse in a controlled manner to help absorb crash energy while protecting the integrity of the occupant safety cage.The safety cage is reinforced with welded, tubular-section members that frame door openings and support the roof and steel members in the doors. The combination of single-piece door aperture and door beam reinforcements help resist side-impact intrusion.
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