Suzuki, VW Discuss Resolution of Venture Dispute

Volkswagen AG and Suzuki Motor Corp. are negotiating a possible settlement of the legal battle about their defunct joint venture and equity alliance, Bloomberg News reports.

Unidentified sources tell the news service the companies are considering a revival of the venture or a breakup agreement. The sources say the talks involve VW Chairman Ferdinand Piech and Suzuki President Osamu Suzuki.

The venture was set up in late 2009 so Suzuki and VW could share expertise about minicars and advanced powertrain technologies. But cultural clashes kept the partners from accomplishing those goals. Each company accuses the other of breaching the terms of their alliance.

Suzuki demanded a "divorce" in September 2011 and shed its 1.5% VW holding. But the German company has refused to sell its 19.9% Suzuki stake. Suzuki filed a complaint with the ICC International Court of Arbitration in London a month later, seeking to force VW to divest the stock.