Toyota Motor will stop distribution of Volkswagen vehicles in Japan, the two firms said Tuesday. Toyota will stop the contract at the end of 2010, as Volkswagen restructures its global sales strategy amid the global economic crisis, the two firms said in a joint statement.
The decision came roughly two weeks after Volkswagen and Suzuki announced a new capital alliance deal. Toyota and Volkswagen originally signed the distribution agreement in 1991. In 2008, out of 45,522 Volkswagen cars sold in Japan, Toyota-Volkswagen joint dealers sold 21,774 units, the two firms said.