Skip to main content

Ruling Finds Volkswagen Fulfilled Agreement with Suzuki, Cooperation 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

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. This decision is based on the principle that a contract may be terminated upon reasonable notice. Volkswagen expects a positive effect on the Company’s earnings and liquidity through the sale of the Suzuki shares”, the Group said on Sunday.

Furthermore, the arbitration court confirmed that Suzuki committed an infringement of the agreement. Suzuki broke off an ongoing cooperation project at the end of 2010/beginning of 2011 and failed to give Volkswagen last-call rights for the delivery of diesel engines. Volkswagen reserves the right to claim damages against Suzuki.

In December 2009, Volkswagen and Suzuki agreed to cooperate on the joint development of innovative and eco-friendly budget cars and on expanding their presence in dynamic emerging automotive markets. At the same time as this strategic cooperation was agreed, Volkswagen purchased a 19.9 percent stake in Suzuki. In return, Suzuki purchased approx. 1.5 percent of the ordinary shares in Volkswagen Aktiengesellschaft. In November 2011, Suzuki initiated arbitration proceedings in London.

The post Ruling Finds Volkswagen Fulfilled Agreement with Suzuki, Cooperation Deemed Terminated appeared first on VWVortex.



from VWVortex http://ift.tt/1UhA41x
via IFTTT
Labels:

Comments

Post a Comment

Popular posts from this blog

Review: Saying Goodbye to the CC V6

For all its size and its global reach, Volkswagen is still, in many ways, a deeply human company. There was, for instance, the Bugatti Veyron an ego project if ever there was one. Then the purchase of Ducati, a move most called folly. And then there was the Phaeton, the Volkswagen that most folks can’t afford. Not only were these moves all strange, I’m sure that they made VW’s accountants furious. None of them made good business sense, but they were all deeply interesting and they all are evidence of the heart that beats at the center of VW. Among these follies is the CC, a car that everyone agrees is rakishly handsome, but that no one really wanted to buy. The car couldn’t last, but the world is brighter for its having been in it. With the approach debut of the Arteon, it seems like a good time to look back on its sadly departing predecessor. The version I drove, because I live in Canada, is a V6 Wolfsburg Edition, which apparently isn’t available in the States. Nor is the V6, not as...
Post a Comment
Read more

T-Prime Makes World Premiere at Beijing

[ See image gallery at www.vwvortex.com ] The SUV segment is one of the fastest growing segments in the world and Volkswagen is showing the world how to do it. With the new T-Prime Concept GTE that was revealed today, the company is showing off all of the technology you can look for in its coming models. The T-Prime is a full-size hybrid SUV that can go up to 31 miles on a charge and gets 87 mpg. The hybrid power station is good for 375 hp and 516 lb/ft of torque and puts the power down with 4MOTION all wheel drive. It’ll get you up to 60 in six seconds. The concept’s real party piece, though, is its interior, which features exclusively touch, gesture, and voice controls. Everything from the infotainment, to the display, and even the gears are controlled by touch-screen. The T-Prime Concept GTE is bigger than the Touareg, and design elements are likely to find their way into all of their SUVs, of which there will be many. Volkswagen is also announcing that they expect to make an S...
Post a Comment
Read more

Watch: The Transport Does a Whole Hell of a lot More than Transport

Petrolicious doesn’t only feature million-dollar classics, it also features the more generally neat, like this 1996 T4 Transporter that became Instagram famous and started and is starting an empire. Callum Creaser’s T4 started life as a panel van, but over the years it has become a homebrew camper van that has gone on adventures around the world. After posting about his adventures to Instagram, the diesel van gained a following and launched The Rolling Home, a series about other people’s small spaces and homey cars. Based on a 1.4-liter diesel with no ECU, Callum says his T4 is easy as pie to work on since information is widely available from sources like ours. The post Watch: The Transport Does a Whole Hell of a lot More than Transport appeared first on VWVortex . from VWVortex https://ift.tt/2KR01Sv via IFTTT
Post a Comment
Read more