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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 Jimny gets confused by American guardrails

The reborn Suzuki Jimny 4x4 has faced some crosswinds in the time it's been on the market: It earned only three stars in its Euro NCAP test due to a badly-inflating driver airbag and troubles with pedestrian protection. The automatic emergency braking function also had some issues in NCAP testing, but now the Jimny's AEB system is facing an another problem — it appears to be confused by guardrails. Two German-market Jimnys had been shipped to Los Angeles for the World Car of the Year testing, Australian journalists found that on some corners of the California test route, the AEB was seemingly triggered by a guardrail in a curve in the road. The problem was found with both Jimnys, and Suzuki's Jimny chief engineer was present to look into the matter; later, Suzuki engineers were able to replicate the glitch with these particular vehicles on the same road. While U.S. sales of the Jimny are extremely unlikely, test data acquired on American roads still seems to be highly valuable for Suzuki, as tests in Japan could not replicate the problem. It appears the road condition, tilt angle, curve aspects and vehicle speed all conspired to puzzle the AEB system, which is now being evaluated for a software or calibration change. The jerky correction by the electronic stability program, audible on the CarAdvice video, happened at 45-55 mph, which is not overly fast for even the narrow and tall Jimny — it is possible that the AEB mistook the guardrail for another car. Suzuki stated: "There is a possibility that the (stability control) is instantaneously switched on (by) reacting to the vehicle sway when departing the S-shaped curve — and then consecutively switches on because the vehicle is circling the curve at high speeds. [...] The intervention of the stability control may give a sense of discomfort to the driver but is not an event that would disturb the vehicle's direction of movement." The driver safety assists are a good addition to the Jimny, of course, given that the 1980s second-generation truck was the subject of a beef between Consumer Reports and Suzuki North America due to its reported tippiness in corners. Related Video:

2013 Suzuki SX4 gets new generation to carry on without us [w/video]

Despite the fact that the coffin has been sealed on Suzuki's US automotive arm, the brand is carrying on elsewhere in the world. The first new product to spearhead the Japanese automaker's product offerings in Europe is this SX4 crossover, making its official debut here at the 2013 Geneva Motor Show. You may remember the little SX4 as the cheapest all-wheel-drive car on sale in the US, packing cute styling and efficient, affordable packaging. And it doesn't appear that the formula has changed too much for this new generation, despite what we think are less attractive new duds derived from Suzuki's 2012 S Cross Concept.
The new SX4 is powered by a choice of two 1.6-liter engines - one diesel, one petrol - the former mated to a six-speed manual transmission while the latter uses a CVT with a "seven-speed manual mode" operated by steering wheel-mounted paddles. All-wheel drive remains intact on the SX4, now with four driver-selectable modes and the Allgrip name.
Suzuki is touting the SX4 as having the world's first double sliding glass sunroof, offering "the largest opening areas" in the segment. Overall, the updated interior looks nicely designed and quite functional, though not exactly a shining beacon of refinement.