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 |  Jul 27 2013, 1:22 PM

suzuki-volkswagen-partnership

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.

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 |  Mar 15 2012, 10:01 AM

The ongoing saga between Volkswagen and Suzuki may last a bit longer. The German automaker is facing arbitration brought by the Japanese automaker to end their partnership, and VW said that the London court handling the proceedings won’t reach a decision before next year.

The break up has been a rough one when back in November of 2011 Volkswagen refused to let go of 19.9-percent of Suzuki’s shares. VW in its annual report published that it “considers the claims to be unfounded and has itself filed counterclaims.” The arbitration process began on November 24th, 2011 at an international court in London by Suzuki. Both companies have been pointing fingers at one another of breaching their cooperation agreement.

Suzuki has no plans on backing down either, as Executive Vice President Yasuhito Harayama said last November that they’re prepared for the arbitration process to take as long as two years to wrap up. Imagine having to wait two years to go through a divorce. Yeesh.

[Source: Bloomberg]

 |  Nov 18 2011, 2:00 PM

The soap opera between Suzuki and Volkswagen has been ongoing for almost a year and now the Japanese automaker is looking to back out. Suzuki wants to buy back all the 19.9% of its shares that VW currently owns and that if the German automaker does not comply, Suzuki will seek mediation.

According to a statement by Suzuki Motor Corporations Chairman Osamu Suzuki, they have terminated the partnership as of today.

This whole rift starter when VW accused Suzuki for violating their agreement when Suzuki made a deal with Fiat S.p.A. over engines.

VW then went on to anger Suzuki by listing it as an “associate” and not a partner in its annual report, and lists Suzuki under “other holdings.”

Suzuki felt this was an insult to its honor and has thus been wanting to end their partnership ever since.

VW has not commented if it will indeed sell its shares back to Suzuki, so this story is far from over yet and from a legal stand-point can get much uglier still.

[Source: Automotive News]

 |  Sep 11 2011, 12:14 PM

With the Volkswagen/Suzuki tie-up all but officially over, the latest move by Volkswagen is sure to end it. After its first full review of the “partnership” Volkswagen has announced it is, “serving notice of an infringement by Suzuki of the cooperation agreement.”

The reason for the notice is a result of Suzuki’s decision to purchase diesel engines from VW rival Fiat, which, claims the German automaker, “contradicts the terms of the cooperation agreement.”

Volkswagen has said it has offered to discuss the matter with Suzuki but said the filing was necessary, giving Suzuki a period of several weeks to “remedy the infringement.”

Back in December of 2009 the two automakers announced the tie-up, which was supposed to see Suzuki gain technology from VW, in return for insight and cooperation by Suzuki into emerging markets like India. VW also purchased a 19.9 percent stake in the Japanese automaker.

Perhaps adding insult to injury, in a release by Volkswagen, the German automaker says the “partnership” is not over yet, referring to Suzuki as, “an attractive investment.” That’s not likely to sit well with Suzuki execs. (Didn’t we say you should expect divorce papers soon?)