Court Nears Ruling on Failed Suzuki-VW Partnership

An international arbitration court is expected by year-end to resolve a dispute between Suzuki Motor Co. and Volkswagen AG over their failed alliance, Reuters reports.

Unnamed sources tell the news service that the ICC International Court of Arbitration in London has completed hearings, making a final ruling likely later this year.

VW paid about €1.7 billion in late 2009 to buy a 19.9% stake in Suzuki in 2010. Suzuki acquired 1.5% of VW. The deal was intended to swap Suzuki's minicar expertise and VW's advanced powertrain know-how. But cultural differences stalled the partnership from the beginning.

By September 2010, Suzuki was demanding a "divorce." It soon sold its VW stake and unilaterally dissolved the partnership. But Volkswagen declined to do the same, prompting Suzuki to petition the court in late 2011.