F&I Management & Training

Suzuki has started arbitration proceedings against Volkswagen to try and force it to dispose of its stake in the Japanese carmaker.

Volkswagen bought a 19.9 per cent stake in Suzuki in 2009 but relations deteriorated with Suzuki ending the relationship in September after VW accused it of breaking an agreement.

In a statement, Suzuki said: “Suzuki Motor Corporation (“Suzuki”) is today commencing arbitration proceedings in London with the ICC International Court of Arbitration, in order to compel Volkswagen AG to dispose of its Suzuki shares to Suzuki or Suzuki’s designated third party.

“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 to Suzuki or Suzuki’s designated third party.”

The VW deal with Suzuki had planned to give VW access to the fast-expanding car market in India where the Japanese carmaker is strong while Suzuki was get access to VW technology.

There was also to be would co-operate on new technologies but no co-operative deals emerged and the partnership imploded when Suzuki bought diesel engines from Fiat for its cars built in Hungary.

Volkswagen accused it of breach of contract while Suzuki countered with the accusation Volkswagen had not given access to new technologies.

DATED: 28.11.11

FEED: MT