Suzuki: VW breached pact by hiding technology

Japan's Suzuki Motor Corp said on Friday it had served Volkswagen with a notice of a breach of contract for not allowing it access to technologies promised as part of their partnership agreement.

Suzuki has demanded that its biggest shareholder remedy the problem and said it must sell back its stake unless it does so, Executive Vice President Yasuhito Harayama said at a news conference.

Suzuki's action deepens a feud with VW, which accused the Japanese firm of breaching the partnership by procuring diesel engines from Fiat.

VW, which bought a 19.9% interest in Suzuki for about 1.7 billion euros (USD 2.3 billion) in January 2009, is demanding it end the cooperation with Fiat.