Volkswagen's response fails to resolve spat with Suzuki

Volkswagen and Suzuki Motor remain locked in a public feud even as the Japanese automaker's call on Volkswagen to retract an accusation which it considered defamatory failed to elicit the desired response.

In a letter it shot off a to Volkswagen last week Suzuki giving the German firm time till 30 September to publicly retract a statement that Suzuki had violated a pact, with the  signing a diesel engine deal with Italy's Fiat, saying the claim had damaged its reputation (See: Suzuki sets 30 September deadline to VW to retract allegation).

Suzuki today said it had received a response from the German automaker that was "not worth commenting on".

Declining to disclose the contents Suzuki said it had to decide on the next step after its request was ignored.

Earlier this month the two-year old alliance between the two companies collapsed with the Japanese car maker dissolving the partnership after the German firm accused it of violating their partnership contract by agreeing to buy diesel engines from Italy's Fiat SpA.(See: Suzuki ends two-year alliance with VW)

Wolfsburg, Germany-based Volkswagen, one of the world's leading automobile manufacturers, issued a notice to Suzuki for infringement of their agreement relating to the supply of diesel engines produced by another manufacturer, without naming the manufacturer.