VW Must Sell Its Stake in Suzuki
Volkswagen AG has been ordered to sell its stake in Suzuki Motor Corp. by the International Court of Arbitration of the International Chamber of Commerce.
#economics
Volkswagen AG has been ordered to sell its stake in Suzuki Motor Corp. by the International Court of Arbitration of the International Chamber of Commerce. Suzuki says it will buy back the shares.
The ruling settles a four-year-old disagreement between the companies over the unwinding of their brief and unproductive partnership.
Suzuki and VW launched the alliance in 2009 when VW bought 19.9% of Suzuki and Suzuki acquired 1.5% of VW. The companies had hoped the partnership would help VW develop inexpensive small cars and give Suzuki access to advanced diesel and hybrid powertrain technologies.
But major differences in corporate culture stalled the efforts, prompting Suzuki Chairman Osamu Suzuki to declare in September 2011 the company "wanted a divorce." Suzuki sold its stake in VW and submitted a notice of termination in November 2011. But VW refused to sell its shares in the Japanese minicar maker.
The court ruled the partnership was ended as of May 2012. VW has agreed to sell its Suzuki holding. Suzuki must compensate VW for breach of contract by paying an amount to be set in a second stage of arbitration.
RELATED CONTENT
-
On Global EV Sales, Lean and the Supply Chain & Dealing With Snow
The distribution of EVs and potential implications, why lean still matters even with supply chain issues, where there are the most industrial robots, a potential coming shortage that isn’t a microprocessor, mapping tech and obscured signs, and a look at the future
-
Porsche Doubles EV Target for 2025
Porsche AG says about half the vehicles it sells by 2025 will be equipped with hybrid or all-electric powertrains, twice the ratio it forecast four weeks ago.
-
On Urban Transport, the Jeep Grand Wagoneer, Lamborghini and more
Why electric pods may be the future of urban transport, the amazing Jeep Grand Wagoneer, Lamborghini is a green pioneer, LMC on capacity utilization, an aluminum study gives the nod to. . .aluminum, and why McLaren is working with TUMI.