Suzuki says UK Arbitration to recover shares from VW to start in 2013

Article by Anita Panait, on July 5, 2012

Suzuki Motor Corp. is confident that it would be able to cut its ties with Volkswagen AG as the legal arbitration between the two carmakers is expected to commence in the spring of 2013 in London. In November 2011, Suzuki said it would pursue arbitration to force the German carmaker to return a 19.9 percent stake in Suzuki that it bought in 2009 as part of a partnership deal that saw VW paying EUR1.7 billion ($2.1 billion) for the shares. Source privy to Suzuki said that the Japanese carmaker has offered to buy back the shares at market price, currently pegged at around EUR2 billion.

Yasuhito Harayama, Suzuki's vice president of business development, said during the annual shareholders' meeting that agreement with VW is already terminated.

Harayama remarked that because of the termination of the deal, VW has no legitimacy to keep on holding Suzuki shares. He disclosed that the company is in arbitration in the UK for the return of the shares.

The partnership between Suzuki and VW broke down after the Japanese carmaker claimed that its German partner failed to provide the technology it had pledged as part of the agreement. On the other hand, VW said in statement in November 2011 that Suzuki broke the terms of their alliance when it sought Fiat for the supply of a 1.6-liter diesel engine for its SX4 subcompact sports utility vehicle.

The legal proceedings will be held at the ICC International Court of Arbitration in London. Global firms usually use arbitrators in London to resolve differences as their decisions are respected and the arbitration process takes place in private. [source: Autonews]

Topics: suzuki, vw, uk

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Back in 2009, Nissan first introduced the Nissan Leaf, the company’s first all-electric vehicle. LEAF stands for Leading Environmentally-friendly Affordable Family car and this particular EV has been considered as...
by - December 3, 2016
In the minivan segment, the 2017 Chrysler Pacifica is already impressive in terms of fuel economy figures – as rated by the United States Environmental Protection Agency. In fact, the...
by - December 2, 2016
Having a blacked-out Bentley Mulsanne Speed is already menacing by itself but by naming it as the Bamford X, it became all the more imposing. This model was made by...
by - December 2, 2016
We have good news for those who are waiting for the latest version of the Mazda CX-5 compact crossover. It was just unveiled in November at the 2016 Los Angeles...
by - December 2, 2016
Those familiar with racing know that Marco Wittmann’s win during the 2016 Deutsche Tourenwagen Masters held last May was noteworthy as it was his second title in four seasons. In...
by - December 2, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries