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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.

Audi spending an additional $2.5 billion on expansion through 2019

Every year, it seems the Volkswagen Group announces a new and larger spend to push growth and profit, with Audi a regular recipient of the moolah. That's reasonable, seeing as hauls in 40 percent of Group operating profits. In December last year Audi said it would spend an additional 100 million euros ($122M US) per year through 2018 to develop new models and expand production, targeting 60 models by 2020 and luxury sales leadership. This month Audi said it will boost that by another two billion euros ($2.5B US) over the next five years, for a total outlay of 24 billion euros from 2014 to 2019. Something like 70 percent of those billions will be spent on new models, technology like "connectivity and lightweight construction," and factory expansion at its plants in Ingolstadt and Neckarsulm. Most of the ten models that will plump the lineup to 60 cars will mainly be aimed at the C and D segments, as well as crossovers, the brand's burgeoning portfolio of PHEV models, and all-electric cars that will begin staking ground in the segment. The big spend comes at the same time as Audi is working hard to reduce costs by $2.5 billion to maintain profitability, part of a larger push by VW to cut costs by $6.1 billion by 2017. More than a billion euros will go to new factories in Mexico and Brazil. Work begins on the Mexico plant next year, and when it comes on-line in 2016, Audi's Q5 successor will roll out of its warehouse doors; Audi has already announced it will hire 850 more workers next year in Mexico. When that's done, Mexico's production of German luxury cars will only trail that of Germany, China and the US. The company's Brazil plant will produce the A3 and S3 starting next year, and the brand figures luxury car buying there will triple by 2017. News Source: Reuters Earnings/Financials Plants/Manufacturing Audi Volkswagen Luxury Mexico Brazil ulrich hackenberg

Volkswagen drops first teaser of next-gen T6 Transporter

The history of Volkswagen's line of boxy Transporter vans goes all the way back to 1950, and the early models' shape likely ranks in fame with the Beetle. VW Commercial Vehicles is now teasing the next step in that legacy with this sketch of the new T6. Judging by this shot, VW is sticking with the van's familiar, square shape. Although this sketch makes the front end look a bit more curvaceous and possibly with a shorter overhang than the current T5. Finding out the truth won't take long because the T6 will debut on April 15, and it will go on sale in the UK by the end of the year. These days the US commercial van segment is rapidly expanding with new models filling the market. Autoblog reached out to VW spokesperson Mark Gillies to find out if the latest Transporter might come across the Atlantic. "LCVs are under consideration, but there are no plans" to bring the T6 to the US at this time, Gillies said. Related Video: Show full PR text VOLKSWAGEN COMMERCIAL VEHICLES REVEALS SKETCH OF FORTHCOMING SIXTH-GENERATION TRANSPORTER Ahead of its official world premiere on 15 April 2015, Volkswagen Commercial Vehicles has revealed a sketch of the sixth-generation Transporter. When it made its public debut in 1950, few could have predicted the enormous impact the Transporter would have in revolutionising the commercial vehicle market, creating a timeless automotive icon in the process. Whilst the Transporter has evolved dramatically during that time the philosophy and vision that created the original still holds true. Getting the job done efficiently and reliably has been at the heart of the Volkswagen philosophy for the past 65 years. Its reputation for rugged reliability has endured over the decades to make the Volkswagen Transporter one of the world's best-selling light commercial vehicles. The sixth-generation Transporter will go on sale in the UK later this year. (ends)