[Aditya]

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 Suzuki’s claims of breach of contract.

[volkman10]

Suzuki updates website with details of the ruling.



http://www.globalsuzuki.com/globalnews/2015/0830.html

[GTO]

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:

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.

[DicKy]

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.

[volkman10]

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

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

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

[deetjohn]

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.



Source

[volkman10]

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.

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]

Suzuki - VW Arbitration by Settlement completed.



Source: Suzuki press release

[sgiitk]

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.

[romeomidhun]

Originally Posted by sgiitk

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.