Home Business Suzuki and VW Alliance Has Terminated, International Court Rules

Suzuki and VW Alliance Has Terminated, International Court Rules

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An International Chamber of Commerce’s ruling has settled a four-year dispute between carmakers Volkswagen AG and Suzuki Motor over their failed partnership.

The court ruled that VW should sell its 19.9% stake in Suzuki.

Japan’s Suzuki first requested the sale of VW’s shares in 2011 after a plan to collaborate on new technology failed, but the German firm had refused.

Suzuki’s chairman Osamu Suzuki said it “used to feel as if a small bone were stuck in my throat…I feel so refreshed now”.

“It was a precious experience,” he said.

“I learned there are different types of companies.”Suzuki and VW alliance terminated

Asked about future partnerships with VW Osamu Suzuki said “you will not remarry someone you have divorced”.

For its part, Volkswagen said: “We welcome the fact that there is now clarity. The co-operation between the two companies has now been ended.”

VW and Suzuki had agreed to work together on fuel efficient cars but Suzuki accused VW of withholding information it had promised to share, while VW objected to a Suzuki deal to buy diesel engines from Fiat.


As part of the 2009 agreement, VW bought the Suzuki stake as a way of it gaining access to the Indian market for small cars, where the Japanese firm had a leading position.

Suzuki said it planned to buy back the shares from VW at a “reasonable” price, which one analyst told Reuters was likely to be Friday’s closing price of 4,151.5 yen ($34.1).

In a statement, Suzuki said it did not foresee any financial impact on its full-year earnings.