Suzuki Vows to Maintain Independence

Suzuki Motor Corp. says its soured partnership with Volkswagen AG has convinced it to shun any future ventures that threaten its independence.

Suzuki will use cash to buy back shares worth some 463 billion yen ($3.8 billion) that VW purchased in 2009 to gain a 19.9% stake in the company. The buyback will unwind a partnership that failed to complete any projects and led to a four-year battle in an international arbitration court. Chairman Osamu Suzuki likened the process to a divorce.

Analysts say Suzuki may be forced into new collaborations to offset the cost of developing advanced vehicle technologies. But they opine such ventures will focus on sharply defined objectives and not involve an equity swap.