The alliance between Suzuki and Volkswagen turned ugly a couple of years ago, but the two automakers are exploring options to once again cooperate with one another or at least to enter a settlement to end the legal battle.
According to reports, Volkswagen Chairman Ferdinand Piech and Suzuki President Osamu Suzuki are working together to reach an agreement, with both automakers still viewing a cooperative agreement as compelling. If both parties are unable to reach an agreement, the proceedings at a London-based arbitration court will move forward.
In 2009, Volkswagen became the largest shareholder of Suzuki when it acquired 19.9 percent for 1.7-billion euros. As part of the deal, Suzuki bought VW stock worth about 770-million euros.
Originally, the two automakers planned to cooperate on compact cars for emerging markets, but two years ago, both companies accused one another for breaching the agreement. Currently, Suzuki has filed a lawsuit in a London court demanding that the German automaker return its stakeholding.
[Source: Automotive News Europe]
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