Suzuki has just released a press statement saying that, because of the Volkswagen Group’s unwillingness to sell back 19.9% of its own shares, it has made the decision to take the dispute to an international court for arbitration, marking the latest episode in a long-standing spat between the two automakers.
Suzuki was planning to give Volkswagen “some time” to come to terms with the break up and settle on an agreement. Suzuki chairman Osamu Suzuki also said Volkswagen has “continued to refuse our attempts on numerous occasions to resolve these issues through negotiation”. Volkswagen is refusing to budge though, so Suzuki will take the dispute to the International Court of Arbitration in London.
Arbitration involves getting a third party in to review the circumstances of both parties. A final decision will then be made to settle the dispute which both Suzuki and Volkswagen will be legally obligated to adhere to.
The two companies have been fighting each other ever since a document in VW’s 2010 annual report described Suzuki as an “associate” was reported in March. The quarrel between the two automakers escalated with the Germans later on accusing the Japanese firm for violating their agreement by buying diesel engines from the Fiat Group.
Volkswagen is yet to release an official statement on the matter, only saying that it is disappointed that Suzuki has pulled the pin on the partnership, and says that there is no legal foundation to support Suzuki’s attempt to retrieve the 19.9 per cent share.