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VW and Suzuki End Angry Feud

Arbitration ends failed green car alliance.

by on Aug.31, 2015

Suzuki pulled out of the US with the failure of its midsize model, the Kizashi.

An arbitration tribunal has pulled the plug on a once-promising green car alliance between Volkswagen AG and Suzuki Motor Corp. The German maker has now been ordered to sell back the 19.9% stake it had purchased in the Japanese car company.

But VW says that may yet sue Suzuki for damages as a result of the break-up of the alliance which was formed in 2009 but never got off the ground, instead developing into a bitter public dispute between the two companies.

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“It used to feel as if a small bone were stuck in my throat,” Suzuki Chairman and Chief Executive Osamu Suzuki told a news conference after learning of the decision. “I feel so refreshed now.”


VW Holds Suzuki Stake Though Legal Battle Looms

Japanese maker accuses erstwhile German partner of breaching their agreement.

by on Oct.17, 2011

Suzuki was hoping to pick up some of VW's technical know-how for vehicles like its Kizashi.

Despite an increasingly tense war of words that could land the erstwhile partners in court, Volkswagen says it has no intention of selling off its stake in Japan’s Suzuki Motor Corp.

The two makers have been engaged in an increasingly noisy public spot, in recent weeks, Suzuki officially serving Volkswagen AG with a “notice of breach “in relation to the companies’ Framework Agreement, which was signed in 2009.

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Complicating the situation, VW now accuses Suzuki of breaching the agreement itself by agreeing to purchase diesel engines from Volkswagen’s Italian rival, SpA.

“The discussion between both parties will be exclusively conducted internally,” said a statement from Volkswagen, Europe’s largest maker and currently the second-largest worldwide behind General Motors.