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Volkswagen, Suzuki Settle Four-Year Legal Dispute

Motor Trend logo Motor Trend 9/1/2015 Megan Stewart
Volkswagen Suzuki Logo© Provided by MotorTrend Volkswagen Suzuki Logo

The International Court of Arbitration of the International Chamber of Commerce in London has ordered Volkswagen to sell its shares in Suzuki, which puts an end to the drawn-out legal battle that began four years ago. The committee also found that the partnership between the two companies was legally terminated when Suzuki submitted a notice of termination.

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The battle between VW and Suzuki began back in November 2011, just two years into the partnership that saw each company purchase a large stake in the other. The feud began with a he-said-she-said battle going back and forth, with VW claiming that Suzuki was in talks with Fiat and Suzuki calling VW "a ball and chain." And with VW owning a fifth of Suzuki, the partnership was never on equal grounds.

The partnership was initially formed to help VW enter the Indian marked with a low-cost car, and to give Suzuki access to hybrid powertrains. However, with the dissolution of the partnership, VW will have to forge ahead independently, while Suzuki is in a better position to get another global partner to help with advanced technologies.

Volkswagen has acknowledged the ruling and will get rid of its remaining shares, either to Suzuki itself or a designated third party. However, the ruling also upheld VW's counterclaim that Suzuki had breached contract, and now the company will have to compensate VW, but the amount of damages will be figured out at a later arbitration hearing.

Source: Automotive News (Subscription required)

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