Suzuki Launches Arbitration to Terminate VW Alliance

The ‘divorce’ of Suzuki and Volkswagen is turning ugly, as Suzuki announced today it’s taking to the international courts with arbitration proceedings against Volkswagen Group to get its shares back. Suzuki’s aim is to get back the 19.89 percent stake that is in VW’s possession.
“The arbitration proceedings follow Suzuki's termination of its alliance with Volkswagen AG on 18 November 2011, and Volkswagen AG's lack of response to Suzuki's requests for the disposition of its shares," Suzuki said in an official statement.

The partnership that was meant as a way for VW to get a foothold in India also saw Suzuki getting a 1.49 percent holding in the German automotive giant. In return, they were to get technology too expensive to develop on their own, but the deal went sower.

"Volkswagen AG did not allow Suzuki access to Volkswagen AG's core technology and it also became clear that there were differences between Suzuki and Volkswagen in the understanding of 'independence,'" Suzuki said, justifying the split. "The cross-shareholding alliance must be dissolved immediately and in so doing the parties will return to their independent status."

Last week, when Suzuki first suggested they would go to court, VW made this official statement: “We are extremely disappointed that Suzuki has taken this step to terminate the agreement. There is no legal foundation whatsoever obliging us to surrender our shares. Volkswagen will continue to hold its stake.”
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About the author: Mihnea Radu
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Mihnea's favorite cars have already been built, the so-called modern classics from the '80s and '90s. He also loves local car culture from all over the world, so don't be surprised to see him getting excited about weird Japanese imports, low-rider VWs out of Germany, replicas from Russia or LS swaps down in Florida.
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