Suzuki Motor Corp., on Thursday announced it started arbitration procedures with the International Chamber of Commerce in order to compel Volkswagen AG to dispose of its Suzuki shares to Suzuki or Suzuki’s designated third party.
The Japanese automaker said that 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 two firms formed a 1.7 billion euro ($2.3 billion) tie-up in 2009.
Each company has accused the other of breaching the cooperation agreement, which was meant to supply Suzuki with technology and provide VW with access to the Indian car market.
On September 12, Volkswagen alleged that Suzuki infringed the terms of the long term cooperation agreement by deciding to buy diesel engines from Italian car maker Fiat SpA.
Last time when contacted, VW Ag said the process can’t force it to sell its 19.9 percent stake in Suzuki.
Volkswagen owns the stake under a hybrid and electric car partnership inked two years ago that has unraveled into a public feud.
“I am more disappointed that, having shaken the hand of Dr Winterkorn in agreeing to this partnership, he has not honoured his commitment to grant Suzuki access to what was originally agreed,” Mr Suzuki chairman and chief executive of Suzuki Motors said.
Suzuki Motors rose 0.9 percent to 1,533 yen in Tokyo, compared with a 1.8 percent drop in the benchmark Nikkei 225 Stock Average.