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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.

Japan may aid carmakers facing U.S. tariff threat

TOKYO — Japan is considering giving carmakers fiscal support including tax breaks to offset the impact from trade frictions with the United States and a sales-tax hike planned for next year, government sources told Reuters on Wednesday. Going into a second round of trade talks with the United States on Sept. 21, Japan is hoping to avert steep tariffs on its car exports and fend off U.S. demands for a bilateral free trade agreement that could put it under pressure to open politically sensitive markets, like agriculture. "If the trade talks pile pressure on Japan's car exports, we would need to consider measures to support the auto industry," a ruling party official said on condition of anonymity because of sensitivity of the matter. The auto industry accounts for about 20 percent of Japan's overall output and around 60-70 percent of the country's trade surplus with the United States, making it vulnerable to U.S. action against Japanese exports. Japan's biggest automakers and components suppliers fear they could take a significant hit if Washington follows through on proposals to hike tariffs on autos and auto parts to 25 percent. Policymakers also worry that an increase in the sales tax from 8 percent to 10 percent planned for October 2019, could cause a slump in sales of big-ticket items such as cars and home. Prime Minister Shinzo Abe has twice postponed the tax hike after the last increase from 5 percent in 2014 dealt a blow to private consumption, which accounts for about 60 percent of the economy. To prevent a pullback in demand after the tax hike, the government may consider large fiscal spending later when it draws up its budget for next year, government sources said. "One option may be to greatly reduce or abolish the automobile purchase tax," one of the government sources said. The government is also considering cuts in the automobile tax and automobile weight tax to help car buyers, the source added. Reporting by Izumi Nakagawa and Tetsushi KajimotoRelated Video: Image Credit: Getty Government/Legal Isuzu Mazda Mitsubishi Nissan Subaru Suzuki Toyota Trump Trump tariffs trade

Suzuki concepts are exploring mountain trails and the culinary arts

Attention is already on Suzuki products headed to the upcoming Tokyo Auto Salon thanks to Japanese tuner DAMD. The company turned two Suzuki Jimnys into the Little 5, a tribute to Renault's 5 Turbo and 5 Turbo 2, and the Little Delta, a tribute to the Lancia Delta Integrale. Suzuki's got a trio of its own creations on the way as well, highlighted by new conceptual takes on the Swift hatchback and Spacia kei van that differ from the ones shown during the Tokyo Auto Show. The star player is the new, fourth-generation 2024 Swift hatchback (below) that's probably best considered an evolved third-gen, here called the Swift Cool Yellow Rev Concept for not-exactly-obvious reasons. Solely a flashy cosmetics package, the design drapes a black roof and black roof pillars over a greenish yellow body and dinky black wheels. The grille wears gloss black above a front splitter, the LED headlights and taillights get smoked lenses, and the vinyl wrap advertises the arrival of the front-wheel-drive variant that went on sale in Japan in December.     Show-goers could be more captivated by the Super Carry Mountain Trail Concept, shown up top. Built atop Suzuki's Super Carry commercial truck sold in places like Japan, India, and Southeast Asia, it looks like a shrunken version of an overlanding build we'd see at SEMA; the Super Carry retail model stretches just 11 feet long — 20 inches shorter than a two-door Mini Cooper — and uses a 658-cc engine. The exterior roll cage and tube doors set the tone immediately. Dimensionally proportionate gear runs from the roof rack and light bar to the off-road racing bucket seats, grilles over the side and rear windows, front skid plate and D-rings, Hi-Lift jack strapped to a riser in the bed, and little knobby tires on little off-road wheels. Smoked headlight lenses make their way to this creation, too. This one's reported to be a concept only, meant to show audiences the potential in commercial vehicles outside the workplace.  Finally, there's the wonderfully named Spacia Papa Boku Kitchen Concept. This slightly adventurous kei car disguise outside hides a kitchen in the cargo bay. We'll find out what the chef's area looks like during the show, but designers are said to have envisioned a space where parents and kids can bond over cooking adventures while camping.   The Tokyo Auto Salon is putting this and all sorts of other novelties on display in Chiba City, Japan, January 12-14.