UPDATE 1-Suzuki Motor says it will buy back VW stake as court settles feud

31 Aug 2015 | Author: | No comments yet »

VW Ordered to Sell $3.8 Billion Suzuki Stake as Tie-Up Ends.

Tokyo/Berlin: Volkswagen will sell a Suzuki Motor Corp. stake valued at about 463 billion yen ($3.8 billion, Dh13.95 billion) following a decision from arbitrators that ended a four-year dispute over a failed partnership.

VW will sell its 19.9 percent holding after the arbitrators upheld the Japanese automaker’s request to end the cooperation, the companies said in separate statements on Sunday. The end of the dispute provides Suzuki with the opportunity to find a new partner, after its cooperation with Volkswagen failed to result in a single joint project. It’s small compared to Volkswagen and other global competitors. “It’s like taking out a tiny bone stuck in my throat,” Chairman Osamu Suzuki, who brokered the deal in 2009, said at a press conference on Sunday in Tokyo. “I feel refreshed.” The goal of the partnership was to cooperate on small, fuel-efficient cars for emerging economies, providing Suzuki with access to technology while giving Volkswagen a wider role in the Indian market through Suzuki’s business there.

As trust broke down, the companies accused each other of breaching the accord. “After their irreconcilable quarrelling, the separation was unavoidable,” said Ferdinand Dudenhoeffer, director of the Center for Automotive Research at the University of Duisburg- Essen “Mr Suzuki didn’t want to be a VW employee, and that’s understandable.” Even in winding down the relationship, the two companies were at odds. Suzuki said that Volkswagen has to sell the stake back to them or a party of the Japanese company’s choosing, while Volkswagen said the buyer of the stake hasn’t been decided yet.

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