Suzuki starts arbitration for share transfer from Volkswagen
Quotes

Suzuki starts arbitration for share transfer from Volkswagen

Last Updated: Friday, November 25, 2011, 00:23
 
 Comment 0
 
Suzuki starts arbitration for share transfer from Volkswagen
Tokyo: Suzuki Motor Corporation (SMC) on Thursday said it has started arbitration proceedings at the ICC International Court in London to enable transfer of its shares owned by estranged partner, Germany's Volkswagen AG.

"SMC is Thursday 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," SMC said in a statement.

The arbitration proceedings follow Suzuki's termination of its alliance with Volkswagen AG on November 18, 2011, and Volkswagen AG's lack of response to Suzuki's requests for the disposition of its shares, it added.

In 2009, SMC and Volkswagen (VW) had signed a deal under which the German firm picked up 19.89 percent stake in the Japanese car maker for USD 2.5 billion. It included technology sharing agreement.

SMC has alleged that VW did not allow it access to its core technology despite their agreement.

"It also became clear that there were differences between Suzuki and Volkswagen in the understanding of 'independence'. Suzuki cannot therefore establish a relationship of mutual trust which is the basis for collaboration between the two parties," SMC had said.

Volkswagen AG has however rejected termination of the agreement between the two companies and share transfer.

"There is no legal foundation whatsoever obliging us to surrender our shares. Volkswagen will continue to hold its stake in Suzuki Motor Corp," a spokesperson of Volkswagen AG had said.

PTI



First Published: Friday, November 25, 2011, 00:23


Comments


comments powered by Disqus
Forbes Best Places for Biz 2014
Forbes Best Places for Biz 2014
Hyundai Elite i20
Hyundai Elite i20
John Kery with Indian Biz Honchos
John Kery with Indian Biz Honchos
Honda Mobilio MPV
Honda Mobilio MPV
Tata Zest first drive review: In pics
Tata Zest first drive review: In pics

Web Wrap
Contact Us : Privacy Policy : Legal Disclaimer
Copyright © Zee Media Corporation Ltd. All rights reserved