Go Back   Team-BHP > BHP Worldwide > The International Automotive Scene


Reply
 
Thread Tools Search this Thread
Old 2nd September 2015, 10:55   #1
Team-BHP Support
 
Join Date: Feb 2004
Location: Mumbai
Posts: 7,300
Thanked: 23,829 Times
Default Volkswagen forced to divorce Suzuki

Volkswagen and Suzuki have ended their agreement for the joint development of cars and expansion of presence in emerging markets.

In December 2009, Volkswagen and Suzuki had entered into an agreement which would see the two companies jointly developing eco‐friendly budget cars and expanding their presence in India and other emerging markets. Volkswagen purchased a 19.9% in Suzuki and the Japanese company purchased approximately 1.5% of the ordinary shares in Volkswagen.

According to a ruling by an arbitral tribunal in London, Suzuki breached its contractual obligations to Volkswagen under the agreement. However, it also found that Suzuki terminated the agreement upon reasonable notice. The German company will now have to dispose of the 19.9% stake that it holds in Suzuki. The tribunal has ruled that Volkswagen has a right to claim damages as well.

Suzuki broke off an ongoing cooperation project at the end of 2010 and failed to give Volkswagen last‐call rights for the delivery of diesel engines.

In November 2011, Suzuki initiated arbitration proceedings in London. The tribunal rejected Suzukiís claims of breach of contract.
Aditya is online now   (6) Thanks Reply With Quote
Old 2nd September 2015, 11:11   #2
Distinguished - BHPian
 
Join Date: Dec 2010
Location: --
Posts: 10,025
Thanked: 15,474 Times
Default Re: Volkswagen forced to divorce Suzuki

Suzuki updates website with details of the ruling.

Name:  Capture.PNG
Views: 1725
Size:  47.3 KB

http://www.globalsuzuki.com/globalnews/2015/0830.html
volkman10 is offline   (2) Thanks Reply With Quote
Old 2nd September 2015, 14:55   #3
GTO
Team-BHP Support
 
GTO's Avatar
 
Join Date: Feb 2004
Location: Bombay
Posts: 47,712
Thanked: 89,042 Times
Default Re: Volkswagen forced to divorce Suzuki

Finally! It was a bitter marriage and I guess things are just better this way. Loved Osamu Suzuki's comment in response to a journalist asking him how he feels now:

Quote:
It's like taking out a tiny bone stuck in my throat
Suzuki has a whopping $8 billion in cash! Lets see what kind of premium VW gets, whether all of the 20% goes to Suzuki and if VW manages to get some damages for Suzuki's breach of contract.

Everyone would've thought that the big, bad & arrogant VW would be the troublesome partner, but I got to admit (based on what I've read so far), it was Suzuki that was behaving difficult all throughout. It's as if they developed cold feet after the alliance and just wanted to get out of it at any cost. Thanks to Maruti's enormous success, Suzuki probably figured out that they can survive on their own after all. The alliance with VW was a knee-jerk reaction to the 2009 global recession.

Would be entertaining to see the Japanese & German management battling it out in their meetings . A marriage that was just destined to fail.
GTO is offline   (1) Thanks Reply With Quote
Old 2nd September 2015, 15:06   #4
Senior - BHPian
 
DicKy's Avatar
 
Join Date: Jan 2010
Location: Thiruvanthapuram
Posts: 1,440
Thanked: 607 Times
Default Re: Volkswagen forced to divorce Suzuki

Flame me, but am kinda glad that both have parted ways and Suzuki is independent again.
Call me paranoid, but given VWs history I thought Suzuki would have been consumed by the giant and taken over.

Looks like the little Japanese company has successfully fought off. Like GTO said, the alliance was a knee jerk action and Mr.Suzuki may have had figured out its better to end the alliance.
DicKy is offline   (3) Thanks Reply With Quote
Old 16th September 2015, 14:46   #5
Distinguished - BHPian
 
Join Date: Dec 2010
Location: --
Posts: 10,025
Thanked: 15,474 Times
Default Re: Volkswagen forced to divorce Suzuki

Suzuki Motor Corp to buy back Volkswagen stake for up to $3.9 billion.

Quote:
Suzuki Motor Corp said it would buy back the 19.9 per cent stake held by top shareholder Volkswagen AG on Thursday, after an international arbitration court last month ordered the German automaker to sell its holding
Quote:
The Japanese automaker said it would repurchase as many as 122.77 million shares at Wednesday's closing price of 3,842.50 yen, for up to 471.74 billion yen ($3.9 billion), via the Tokyo Stock Exchange's off-hours trading system before the market open.

https://twitter.com/etauto

Last edited by volkman10 : 16th September 2015 at 14:51.
volkman10 is offline   Reply With Quote
Old 22nd September 2015, 08:21   #6
Distinguished - BHPian
 
deetjohn's Avatar
 
Join Date: Sep 2006
Location: Kochi
Posts: 4,041
Thanked: 7,352 Times
Default Re: Volkswagen forced to divorce Suzuki

The VW shares are tumbling since the EPA cheating scandal broke out. Since Friday, VW lost nearly 20% when trading opened in Europe on Monday. So, Suzuki will further lose money on the stake (1.5%) it holds in VW.

Volkswagen forced to divorce Suzuki-mwdu713_volksw_20150921114009_zh.png

Source
deetjohn is offline   Reply With Quote
Old 28th September 2015, 14:52   #7
Distinguished - BHPian
 
Join Date: Dec 2010
Location: --
Posts: 10,025
Thanked: 15,474 Times
Default Re: Volkswagen forced to divorce Suzuki

Suzuki sells 1.5% VW stake!

Suzuki Motor has sold its entire 1.5 percent stake in Volkswagen Group to Porsche Automobil Holding SE and will post a special profit of 36.7 billion yen ($304 million) on the transaction.

Quote:
The Japanese automaker said on Saturday that it had sold 4,397,000 Volkswagen common shares and that they would be transferred on Sept. 30.

Porsche SE said on its website that its holding in Volkswagen would increase to 52.2 percent after the transfer.

Suzuki has already bought back a 19.9 percent share of its own stock that Volkswagen was ordered to sell by an international arbitration court last month, ending a long-running dispute between the two after a cooperative agreement between them turned sour
http://www.autonews.com/article/2015...olding-company
volkman10 is offline   Reply With Quote
Old 11th February 2016, 09:11   #8
Distinguished - BHPian
 
Join Date: Dec 2010
Location: --
Posts: 10,025
Thanked: 15,474 Times
Default Re: Volkswagen forced to divorce Suzuki

Suzuki - VW Arbitration by Settlement completed.
Name:  23.PNG
Views: 563
Size:  91.7 KB
Name:  24.PNG
Views: 531
Size:  47.6 KB

Source: Suzuki press release
volkman10 is offline   Reply With Quote
Old 11th February 2016, 09:22   #9
Distinguished - BHPian
 
sgiitk's Avatar
 
Join Date: Dec 2007
Location: Kanpur
Posts: 7,160
Thanked: 3,754 Times
Default Re: Volkswagen forced to divorce Suzuki

Good. Imagine MS using VW diesels, some of the environmental lobby (like CSE) would have had a field day, even though by all accounts tweaked or not the VW engines were better then the BS-III/IV standards in India. Of course they submitted false test reports.
sgiitk is offline   Reply With Quote
Old 11th February 2016, 12:57   #10
Senior - BHPian
 
romeomidhun's Avatar
 
Join Date: Nov 2007
Location: Chennai
Posts: 2,625
Thanked: 1,875 Times
Default Re: Volkswagen forced to divorce Suzuki

Quote:
Originally Posted by sgiitk View Post
Good. Imagine MS using VW diesels, some of the environmental lobby (like CSE) would have had a field day, even though by all accounts tweaked or not the VW engines were better then the BS-III/IV standards in India. Of course they submitted false test reports.
I am glad that those tractor-sounding VW Diesel engine won't come under the Swift.
romeomidhun is online now   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
More power for my Miata - Engine swap or Forced induction? soulreaper_20 Modifications & Accessories 1 31st July 2014 18:41
Issues with Bajaj Allianz - Total Loss Vs Forced partial repair. MrinalSinha Indian Car Loans & Insurance 27 15th October 2012 16:52
Was Michael Schumacher really forced to retire by Ferrari? BlackPearl Int'l Motorsport 8 4th August 2007 15:20
forced induction bikes paras211 Technical Stuff 30 4th May 2007 09:31
Chrysler in Deep trouble. Daimler-Chrysler Divorce? GTO The International Automotive Scene 21 5th April 2007 16:28


All times are GMT +5.5. The time now is 17:59.

Copyright ©2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks