Tribunal Seals End of Failed Volkswagen-Suzuki Partnership

31 Aug 2015 | Author: | No comments yet »

Suzuki Motor Corporation: Notification Concerning Arbitration Award.

Volkswagen AG will sell a Suzuki Motor Corp. stake valued at about 463 billion yen ($3.8 billion) back to the Japanese carmaker following a decision from arbitrators that ended a four-year dispute over a failed partnership.Nearly four years after Suzuki started proceedings in London, Suzuki said the arbitrator found that the alliance between the two companies had ended in May 2012, the Japanese auto maker said in a statement. VW will sell its 19.9 percent holding to Suzuki after the arbitrators upheld the Japanese automaker’s request to end the cooperation, the companies said in separate statements on Sunday.

If there are any discrepancies between this document and the original Japanese document, the original Japanese document prevails.) As Suzuki Motor Corporation (“Suzuki”) received an award on 29 August 2015 regarding the arbitration that Suzuki filed with the International Court of Arbitration of the International Chamber of Commerce on 24 November 2011, Suzuki informs you as follows: The Framework Agreement between Volkswagen AG (“VW”) and Suzuki was validly terminated by Suzuki’s notice of termination dated 18 November 2011, such termination being effective from 18 May 2012. Volkswagen AG must dispose of its 19.89% shareholding in Suzuki forthwith to Suzuki or its designee, by a method to be reasonably determined by Suzuki.

In 2009, Suzuki and Volkswagen entered a partnership, with the German auto maker buying a 19.9% stake in Suzuki for about 1.7 billion euros in 2010 ($1.9 billion in today’s rates). Toshihiro Suzuki, who succeeded his father Osamu as president of the company on June 30, is pursuing a goal to boost annual revenue to 3.7 trillion yen by March 2020. “It’s like taking out a tiny bone stuck in my throat — I feel refreshed,” Osamu Suzuki, who is now the chairman, said at a press conference Sunday in Tokyo. The dispute stemmed from the breakdown of a deal brokered in 2009 by Osamu Suzuki and Ferdinand Piech, who was then VW’s supervisory board chairman. The goal was to cooperate on small, fuel-efficient cars for emerging economies, providing Suzuki with access to technology while giving VW a wider role in the Indian market through Suzuki’s business there. “You don’t remarry someone whom you’ve divorced,” Osamu Suzuki said when asked on Sunday about the possibility of working with VW in the future. At this stage, Suzuki does not foresee any need to amend its forecast of consolidated results for the fiscal year ending March 31, 2016, however, if any matters that need to be disclosed occur, such matter will be promptly disclosed.

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