Suzuki initiates arbitration proceedings against Volkswagen
24 November 2011
Suzuki Motor Corp has initiated arbitration proceedings against Volkswagen AG (VW) in a bid to buy back its shares from the German car maker after ending their two-year-old cooperation agreement.
Hamamatsu-based Suzuki has filed for arbitration with the International Chamber of Commerce International Court of Arbitration in London.
"Suzuki Motor Corporation is today commencing arbitration proceedings in London with the ICC International Court of Arbitration, in order to compel Volkswagen AG to dispose of its Suzuki shares to Suzuki or Suzuki's designated third party," the Japanese carmaker said in a statement.
The arbitration proceedings follow Suzuki's termination of its alliance with Volkswagen AG on 18 November 2011, and Volkswagen AG's lack of response to Suzuki's requests for the disposition of its shares to Suzuki or Suzuki's designated third party,'' the statement added.
In September, Suzuki moved for dissolution of their two-year alliance after the German firm accused it of violating their partnership contract by agreeing to buy diesel engines from Italy's Fiat S.p.A. (See: Suzuki ends two-year alliance with VW).
The two automakers have in recent months voiced their differences in public with Suzuki's chairman, Osamu Suzuki saying in a July blog post in Japan's leading business daily, Nikkei that Suzuki "had found nothing that it wanted right away" from Volkswagen's portfolio of technologies.