Suzuki and VW finalize their divorce
Thu, Feb 11 2016The arbitration court took the biggest step to end this transcontinental partnership in August 2015 when the body ruled VW needed sell its 19.9-percent stake in Suzuki. However, the Japanese company wasn't entirely off the hook because VW was still allowed to sue for damages over the diesel engine issue. This latest decision finally clears up that dispute.
Like most marriages, the union between VW and Suzuki began with stars in both parties' eyes. The Germans paid $2.8 billion to buy 19.9 percent of the Japanese company in December 2009. VW was supposed to get greater access to the auto market in India, and Suzuki hoped to capitalize on access to its partner's advanced technology.
By 2011, rumors started percolating that things were contentious behind closed doors. VW allegedly tried to assert control over Suzuki's operations, and the Japanese company reportedly wasn't happy with its access to the German tech. Suzuki even bought diesel engines from Fiat, rather than VW. Later that year, company CEO Osamu Suzuki announced he would end the alliance, and they started working through arbitration.
Notification Concerning Resolution of Arbitration by Settlement
As Suzuki has reached a settlement regarding the arbitration that Suzuki filed with the International Court of Arbitration of the International Chamber of Commerce on 24 November 2011, Suzuki informs you of the following:
1. History from the Request for Arbitration to the Settlement
As announced in the "Notification Concerning Arbitration Award" dated 30 August 2015, the Tribunal indicated that it would address the issue of alleged damages arising from Suzuki's breach of the agreement claimed by Volkswagen AG ("VW") in a further stage of the arbitration proceedings. Suzuki reached a settlement with VW in regard to such arbitration proceedings on 10 February 2016. Accordingly, the arbitration proceedings have been concluded.
2. Outline of the Opposing Party in the Arbitration
(1) Company name Volkswagen Aktiengesellschaft
(2) Address Berliner Ring 2, 38440 Wolfsburg, Bundesrepublik Deutschland
(3) Position and name of representative Matthias Muller, Chairman of the Board of Management
3. Outline of the Settlement
The terms of the settlement provide for the withdrawal by VW of its claims for damages and the payment by Suzuki to VW of a certain amount of money as the settlement amount.
(Note: Suzuki refrains from disclosing details of the terms of the settlement, including the settlement amount, due to an agreement with VW.)
4. Outlook for the Future
Suzuki is planning to pay the settlement amount during this fiscal year (ending 31 March 2016), but this settlement will not have any significant impact on Suzuki's consolidated results for this fiscal year.
As Suzuki has reached a settlement regarding the arbitration that Suzuki filed with the International Court of Arbitration of the International Chamber of Commerce on 24 November 2011, Suzuki informs you of the following:
1. History from the Request for Arbitration to the Settlement
As announced in the "Notification Concerning Arbitration Award" dated 30 August 2015, the Tribunal indicated that it would address the issue of alleged damages arising from Suzuki's breach of the agreement claimed by Volkswagen AG ("VW") in a further stage of the arbitration proceedings. Suzuki reached a settlement with VW in regard to such arbitration proceedings on 10 February 2016. Accordingly, the arbitration proceedings have been concluded.
2. Outline of the Opposing Party in the Arbitration
(1) Company name Volkswagen Aktiengesellschaft
(2) Address Berliner Ring 2, 38440 Wolfsburg, Bundesrepublik Deutschland
(3) Position and name of representative Matthias Muller, Chairman of the Board of Management
3. Outline of the Settlement
The terms of the settlement provide for the withdrawal by VW of its claims for damages and the payment by Suzuki to VW of a certain amount of money as the settlement amount.
(Note: Suzuki refrains from disclosing details of the terms of the settlement, including the settlement amount, due to an agreement with VW.)
4. Outlook for the Future
Suzuki is planning to pay the settlement amount during this fiscal year (ending 31 March 2016), but this settlement will not have any significant impact on Suzuki's consolidated results for this fiscal year.
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