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Volkswagen forced to sell stake in Suzuki

The six-year-long failed marriage between Volkswagen and Suzuki has finally come to an end. Almost. An arbitration panel in London issued its final verdict which, according to a VW press release, cleared Suzuki in terminating the agreement, so VW now needs to get rid of its 19.9-percent share. However, the tribunal's decision said VW performed all of its obligations and Suzuki didn't – the Japanese carmaker should have given VW last-call rights for a delivery of diesel engines, but failed to. The breach opens Suzuki up to damage claim, but so far VW only says it reserves the right to sue. Now that Suzuki has an outside investor to provide funds it meant to get from VW, perhaps both can get back to their reasons for being. The press release is below. Ruling in arbitration proceedings: Cooperation between Volkswagen and Suzuki deemed terminated - Arbitral tribunal confirms Volkswagen met contractual obligations and finds that Suzuki has ordinary right to terminate agreement based on reasonable notice - Volkswagen to dispose of its 19.9 percent stake in Suzuki and expects positive effect on Company's earnings and liquidity from transaction - Arbitrators also find that Suzuki breached its contractual obligations to Volkswagen under the agreement and that Volkswagen has right to claim damages Wolfsburg, 30 August 2015 - An arbitral tribunal in London has announced its ruling in the dispute between Suzuki Motor Corporation and Volkswagen Aktiengesellschaft. As a result, cooperation between the two parties is deemed terminated. The arbitrators confirmed that Volkswagen met its contractual obligations under the cooperation agreement and found that Suzuki has terminated the agreement upon reasonable notice. Volkswagen will therefore now dispose of its 19.9 percent stake in Suzuki and expects a positive effect on the Company's earnings and liquidity from the transaction. The arbitral tribunal also confirmed that Suzuki breached its contractual obligations to Volkswagen under the agreement and that Volkswagen has the right to claim damages. "We welcome the clarity created by this ruling. The tribunal rejected Suzuki's claims of breach and found that Volkswagen met its contractual obligations under the cooperation agreement. Nevertheless, the arbitrators found that termination of the cooperation agreement by Suzuki on reasonable notice was valid, and that Volkswagen must dispose of the shares purchased.

Suzuki's Paris display is a sad reminder we don't get quirky little Japanese cars anymore

The fun thing about foreign auto shows is getting to see all the cars we don't get at home. In the case of Suzuki, it's a reminder that the brand withered in the US and withdrew due to a lack of product a few years back. What makes it even tougher is that Suzuki's stand in Paris is full of little all-wheel-drive things that would probably do really well in the US now. Talk about bad timing. Take the Ignis above. This thing is about the size of a Mazda CX-3, offers all-wheel drive, and manages to look cute and sophisticated at the same time. Americans would buy it. The SX4 S-Cross, which evolved from the SX4 that did surprisingly well a decade ago in the US, gets an update this year and looks a lot more like a crossover, an improvement on the original funky tall-hatch design. If only Suzuki could have held on a little longer the brand might be taking some sales from Subaru and the many makers of little crossovers. We can't leave here without mentioning the wonderful beigeness of the Cervo hatch that Suzuki brought out to tie the Ignis in with its heritage. It's a rear-engined three-cylinder two-stroke with a Giugiaro-designed body. Yep. The model was never sold in the US, but it was known as the Whizzkid in the UK, which is just fantastic. And its adorable tiny wheels – they looked like 12s or so – are pretty highly stylized. They're actually mirrored by the five-pocket wheels available on the Ignis, which is a nice touch. Related Gallery 2017 Suzuki Ignis: Paris 2016 View 13 Photos Related Gallery 2017 Suzuki SX4 S-Cross: Paris 2016 View 10 Photos Paris Motor Show Suzuki Crossover 2016 paris motor show suzuki ignis

Suzuki Jimny is the classic Defender homage Land Rover should be building

Lake District, U.K. – The Land Rover Defender is to Brits what the F-150 is to Americans. Or rather it was, before it got too expensive and the farmers all switched to Japanese pick-ups. The Defender was effectively put out to pasture, relegated to being a lifestyle trinket. And Land Rover's endless prevarication over replacing the Defender can be partly attributed to this dilemma: Should it be in the original's mold, a fix-it-with-hammers rugged utility vehicle? Or should it concede that market and instead become a premium premium-priced Mercedes G-Class rival? Meanwhile, while Land Rover had dithered, others have capitalized – not least Suzuki's Jimny, which nails the seemingly conflicting demands of the new Defender's brief in one cute, pint-sized package So too is the Jimny priced at a level buyers in markets where it is offered can chalk up as a discretionary purchase. Dating back to the early 1970s, the Jimny has a heritage of its own to draw upon. But this lo-fi remix of traditional 4x4 tech and functionally slick styling has scored a bullseye for both utility users and the hipster brigade, both of whom place great value in authenticity. True, U.S. buyers won't have the option of the Jimny as they will the Defender, no matter how many emails Suzuki receives. But it's interesting to explore how it pulls the rug from underneath Land Rover, right here on the British stalwart's home soil. To demonstrate this we've travelled to the Lake District, a picturesque region on England's northwest coast with classic countryside vistas. Outside of the U.K., mountains topping out a little over 3,000 feet sound little to write home about – but, like the Jimny, modest size and ruggedness aren't mutually exclusive and there are trails here to test any street-spec off-roader. Competing pressures for access and a popular backlash against mechanized vehicles in the countryside mean tight controls for recreational drivers though, with many once-popular trails now closed to traffic. Those that remain accessible carry severe restrictions, our chosen route over Gatescarth Pass rarely opened to traffic and, when it is, limited to 4x4s with wheelbases of 100 inches or less. A Wrangler would just scrape through but these remain a rare sight in the U.K., and the limit is arguably skewed to favor the home team: the 90-inch, short-wheelbase Defenders that remain a staple for the quaintly English pursuit of 'green-laning'.