Timing of arbitration ruling on Suzuki-VW dispute remains unclear

Article by Christian Andrei, on June 16, 2014

It remains unclear when an international arbitration court will issue a ruling on a dispute between Suzuki Motor and Volkswagen AG over a failed collaboration. Suzuki filed for international arbitration in November 2011 following a refusal by Volkswagen to sell back a 19.9-percent stake in the Japanese carmaker that it acquired in January 2010 for EUR1.7 billion ($2.3 billion).

Sources told Automotive News earlier this month that an arbitration court based in London had already finished hearing witnesses and was expected to give a decision before the end of 2014.

Suzuki chairman Osamu Suzuki, when asked on whether the two parties could reach a settlement, said repeatedly: "We are the ones that took this to court." Suzuki and Volkswagen reached an agreement in December 2009 to create a partnership on technologies in areas like hybrid and electric vehicles.

The partnership will also tackle expansion in emerging economies. Suzuki, however, eventually claimed that VW withheld hybrid technology it had vowed to share and has demanded that the German carmaker return the 19.9 percent stake.

Volkswagen, meanwhile, complained about the Japanese carmaker acquiring of diesel engines from Fiat.

Topics: suzuki, vw, partnership

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