Volkswagen And Suzuki Settle Dispute

Volkswagen And Suzuki Settle Dispute
Suzuki Celerio 1.0 Club – Frontansicht, 26. Juli 2015, Düsseldorf M 93: „Dein Nordrhein-Westfalen“/ Flickr CC BY 2.0

The ongoing dispute between Suzuki Motor Corp and Volkswagen AG has finally been settled by the International Court of Arbitration of the International Chamber of Commerce. As a result, Suzuki says there will be a change in the largest shareholder in the company among other things.

The dispute started back in Nov 18, 2011 when Suzuki Motor Corporation attempted to terminate its partnership with Volkswagen AG. However, the latter did not respond to the former’s requests for disposition of the company’s shares. As a result, Suzuki started arbitration proceedings on Nov 24, 2011 in London with the ICC International Court of Arbitration in the hopes of being able to compel Volkswagen to dispose of its Suzuki shares back to Suzuki or through a third party designated by Suzuki.


Just a few days ago, Suzuki announced that the Tribunal has finally ruled that the Framework Agreement between Suzuki and Volkswagen was, in fact, “validly terminated” back in 2011. Moreover, the termination was already in effect as early as May 18, 2012.

Now, Suzuki is planning to get its shares back from Volkswagen AG through the ToSTNeT-3 system. Fox Business reports that back in 2009, Volkswagen and Suzuki established a partnership wherein the former acquired 19.9% stake in the latter. This amounted to €1.7 billion back in 2010. Today, it’s worth about $1.9 billion. Corporate cultural differences eventually proved to be too much of a problem for the two automakers to work successfully together.

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As the ruling came out, Volkswagen said in a statement to Fox Business that it has given them clarity. Meanwhile, Suzuki says that the recent ruling has no effect on its forecast for the company’s consolidated results for fiscal year ending on March 31, 2016.

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