SUZUKI AND VW IN ARBITRATION DISPUTE
18 Nov, 2011
Car making giants, Suzuki and Volkswagen (VW) are embroiled in a bitter battle regarding their strategic partnership which has not gone as well as first hoped.
Japanese Suzuki insists that German VW, with whom it embarked up on a partnership in 2009 in a bid to improve both companies’ product, is contractually obliged to submit to arbitration.
This is the latest move in a bid to persuade VW to relinquish its 19.89 per cent share in Suzuki, which currently it is refusing to do, claiming, according to the Financial Times, that the share is an ‘attractive investment’.
The alliance has broken down allegedly over conflicts regarding technology transfers, the FT reported, and VW has said: “Volkswagen categorically repudiates any allegation that we have in any way breached or failed to comply with the spirit of the co-operation agreement and rejects any termination of the agreement.”
Osamu Suzuki, Suzuki’s chairman and chief executive, said, according to the FT: “I am more disappointed that having shaken the hand of Dr Winterkorn [Martin Winterkorn, VW chief executive] in agreeing to this partnership, he has not honoured his commitment to grant Suzuki access to what was originally agreed.”