Volkswagen AG rejected efforts by Suzuki Motor Corp. to force an end to a two-year-old partnership that hasn't yielded a single project.
Suzuki said Friday that it terminated the cooperation agreement and demanded that VW sell back its 19.9 percent stake in the Japanese manufacturer, threatening to take the dispute to an international court for arbitration. Wolfsburg, Germany-based Volkswagen called the actions "without foundation," reaffirming plans to retain the holding.
"The glass is broken," said Arndt Ellinghorst, a London- based analyst with Credit Suisse. "I don't see any reason why VW should not sell its stake back to Suzuki," as there seems little chance of repairing the relationship.