In the name of the Lord

It began with noble promises and great oaths of sympathy – and threatens to end in disappointed love and a dirty divorce war. At least, this is how the German business press has described the conflict between Volkswagen and Suzuki that has been coined “Rosenkrieg” in the columns of the newspapers. The two car manufacturers formed this alliance some two years ago in order to mutually profit from each partner’s technologies and know-how.

By now, the Japanese obviously do not want the cross-shareholding with the Germans, who own approximately 20 percent of Suzuki shares. They claim that Volkswagen has not abided by its promises and contracts. The Asians, who own a reciprocal shareholding of 1.5 percent of Volkswagen, are now stirring up bad air around their major shareholder because Volkswagen is not willing to sell their shares.

Bell Pottinger is an important aide in this regard. The agency provides Suzuki with consultancy and press work outside Japan. This is notable if only because the giant agency is currently the focus of a scandal surrounding dirty tricks and their alleged undue influence on politics in England. The company is also not especially picky when it comes to their choice of clients.

German journalists are being phoned from London by managers who are employed by agency founder Bell and who advise Suzuki – and the German media representatives are puzzled as to why Suzuki has contracted Bell Pottinger. On the one hand, because of the Londoners' bad reputation, on the other, because the consultants apparently lack detailed knowledge of German mechanisms and customs; solid contacts to the important car journalists were hitherto nonexistent.

The two agency subsidiaries of Bell Pottinger in Germany, Harvard and MMK are rather classic PR consultants. This is probably why newspapers are repeatedly receiving inquiries from the British agency about how certain passages are to be understood and what, if any, VW’s influence might have been. “They know Germany only from the plane”, a competitor complains.

Assuming that Germany is going to be the main battlefield in the coming conflict with the Wolfsburgers [editor: VW's HQ is in Wolfsburg], the question arises as to why the Japanese did not hire one of the usual suspects like Hering Schuppener, CNC, FTI Consulting or Brunswick in this country. Is it the seemingly absurd fear that all Germans are under the thumb of the mighty Volkswagen group? Or because the Japanese are not familiar with the local agency market and have simply bought a big, international name – following the code: The main thing is they have an office in Europe? At least Lord Bell is said to be excellently connected in Asia.

Or is Suzuki looking for an agency to act as their hatchet man? Meanwhile: The work of the British, who, referring to their non-disclosure agreements, refuse to make any official statements, is in line with what journalists are used to from similar conflicts with the German agency counterparts.

Indeed, the agency is aggressively trying to sell Suzuki’s interpretation. There is no word, however, of any dirty tricks as of now – and Bell Pottinger is not putting any more spin to work than VW. Journalists report that their conduct has been friendly and professional. “So far, I have not seen them as the demoniacal spin doctors that the British press is describing them as”, says one journalist.

The following explanation seems to be the most plausible: The British agency was hired because the ICC International Court of Arbitration called on by Suzuki is based in London. Using this mechanism, they intend for Volkswagen to be forced to dispose of their shares. Another reason could be that the agency has been recommended by a law firm. Apparently, Suzuki is expecting that the international media, that has so far observed rather quietly in the background in this dispute, will become more and more engaged as the trial progresses.

Volkswagen, as usual acting without external consultation, is apparently relaxed in the face of this. Journalists do not believe that the German car manufacturer is buckling under the pressure built up by Bell Pottinger and Suzuki. "They are waiting for the right moment, as with Scania", they say.