On February 10, 2016, Suzuki announced that it will settle its disputes with Volkswagen.
In 2009, both Suzuki and Volkswagen shared stakes and started a joint funds cooperation and business partnership, down to the technical level. However, a misunderstanding of ideas between both parties led Suzuki to notify Volkswagen about the cancellation of their partnership. At the same time, they also proposed arbitration through the International Court of Arbitration.
Thereafter, the arbitration procedure was recognized by the arbitration court in September 2015, and Suzuki demanded Volkswagen to let them buy back their shares of 111,610,000.
This settlement is related to Volkswagen’s opposition towards the damage claims of Suzuki. Volkswagen insisted on the damage based on Suzuki’s damage based on their breach of contract. In continuation of that, a deliberation of the arbitration was conducted.
Suzuki and Volkswagen settled on this matter on February 10. The arbitration also ended. Volkswagen has abandoned its damage claims, and Suzuki will pay a fixed amount to Volkswagen as a settlement fee. Further details regarding the settlement as well as the amount of settlement have yet been revealed due to their contract with Volkswagen.
Suzuki commented, “We will be paying the settlement fee within this term. This settlement doesn’t affect our company’s performance in this term (Fiscal year 2015).”
(Translated by Claire Marie Sausora)