Osamu Suzuki (middle right), chairman of Suzuki Motor Corporation, can finally celebrate his biggest win. After a failed alliance with Volkswagen put Suzuki — the chairman and company — on the back foot for almost four years, the International Court of Arbitration of the International Chamber of Commerce in London has decided in the Japanese company's favor. Suzuki will purchase back their own stock from Volkswagen.
Suzuki received news of the ruling Saturday and filed the information with the Tokyo Stock Exchange on Sunday.
"It's good that a resolution came. I feel refreshed. It's like clearing a bone stuck in my throat," said to reporters gathered at a news conference in Tokyo, reports Automotive News. "I'm very satisfied with the resolution. Through it, Suzuki was able to attain its biggest objective."
In a statement released today, Suzuki Motor Corporation "requested Volkswagen AG to terminate their business and capital alliance through amicable negotiation. However, as VW failed to respond to Suzuki's request, Suzuki served on 18 November 2011 a notice of termination of the Framework Agreement that was made with VW. Further, on 24 November 2011, based on the parties' agreement, Suzuki filed a request for arbitration in London, which is the place of arbitration with the International Court of Arbitration of the International Chamber of Commerce."
The tribunal found in favor for Suzuki in two areas: a termination of the "Framework Agreement" and Volkswagen's divestment of shared in Suzuki.
From Suzuki:
The Tribunal found that the Framework Agreement was validly terminated by Suzuki's notice of termination dated 18 November 2011 mentioned above, such termination being effective from 18 May 2012.
The Tribunal upheld Suzuki's claim regarding VW's disposal of its shares in Suzuki and ordered VW to divest forthwith those shares to Suzuki or a third party designated by Suzuki using a method which is reasonably determined by Suzuki.
Volkswagen's 19.9-percent share in Suzuki will be purchased by the Japanese company through the Tokyo Stock Exchange.
However, Suzuki could still incur financial penalties later, as Volkswagen's counterclaim of breach of contract was also partially upheld. That claim will be "addressed in a further stage of the arbitration," stated Suzuki Motor Corporation. According to Volkswagen in a statement, Suzuki "failed to give Volkswagen last-call rights for the delivery of diesel engines. Volkswagen reserves the right to claim damages against Suzuki."
The official end of the alliance will likely trigger more succession planning for the Japanese auto and motorcycle manufacturer. In June 2015, Osamu Suzuki appointed his eldest son, Toshihiro, to the role of president.
The post Suzuki: "I Feel Refreshed" After Win Against Volkswagen appeared first on The Truth About Cars.
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