Suzuki to buy back shares as Volkswagen row settled

The ruling came four years after the Japanese small car maker attempted to end an alliance with the German auto giant


Afp August 30, 2015
Japan's automaker Suzuki Motor chairman Osamu Suzuki (R) is surrounded by reporters after he announced the company will buy back Suzuki's shares from German auto giant Volkswagen at a press conference in Tokyo on August 30, 2015. PHOTO: AFP

TOKYO: Japan's Suzuki Motor said on Sunday it plans to buy back its shares sold to Volkswagen after an international arbitration court settled a dispute between the two automakers.

The ruling came four years after the Japanese small car maker attempted to end an alliance with the German auto giant, which has refused Suzuki's repeated demands to sell back the 112.21 million shares, or 19.9 percent of Suzuki.

Arbitrators at the International Chamber of Commerce (ICC) ruled the alliance has been terminated and ordered Volkswagen to dispose of Suzuki shares, the Japanese company said.

Read: Car Troubles: Suzuki frustrated with Volkswagen

Chairman Osamu Suzuki said at a press conference held in Tokyo on Sunday he "feels really good" and is "satisfied" with the decision from arbitrators.

The chairman did not elaborate on why the two automakers had to split after a 1.7 million euro ($2.3 billion) tie-up in 2009.

"It was a precious experience. I learned there are different types of companies," he said.

Read: Pakistan's Japanese-dominated car market poised for new entrants

Asked about future partnerships with Volkswagen, he said "you will not remarry someone you have divorced with," adding the company will focus on "surviving independently."

Suzuki planned to seek support from Volkswagen in hybrid technologies and other eco-friendly areas, while the German firm hoped to jointly develop small cars for emerging markets by taking advantage of Suzuki's know-how.

But they made little progress and halted their joint projects.

Read: Breaking monopoly: Volkswagen to plant its feet in Pakistan?

The Japanese automaker in 2011 said it wanted to end the alliance, citing a deep disagreement over collaboration and complained that its partner failed to provide promised access to technologies.

Suzuki demanded Volkswagen sell back its stake in the Japanese carmaker by November 2012.

Ahead of Suzuki's move towards ending the tie-up, relations had become frayed as Volkswagen served notice of an alleged infringement relating to the supply of diesel engines to Suzuki from Italian carmaker Fiat.

COMMENTS (1)

Atif | 8 years ago | Reply Whatever happens Suzuki's Pakistan based subsidiary - Paksuzuki shows no signs of changing and is still selling obsolete vehicles with outdated technology - mehran, bolan, ravi, cultus, and swift which are no longer being produced or sold in any other countries asides from Pakistan.
Replying to X

Comments are moderated and generally will be posted if they are on-topic and not abusive.

For more information, please see our Comments FAQ