An international court has decided that Volkswagen must sell its shares in its Suzuki partner, which puts an end to an ongoing 4-year feud between the two carmakers over a dysfunctional alliance.
The decision was announced by Suzuki in a filing to the Tokyo Stock Exchange and was enforced by the International Court of Arbitration of the International Chamber of Commerce in London.
Osamu Suzuki, chairman of the brand, said in a conference that took place in Tokyo that “It’s good that a resolution came. I feel refreshed. It’s like clearing a bone stuck in my throat. I’m very satisfied with the resolution. Through it, Suzuki was able to attain its biggest objective.”
The court also validated the termination of the alliance post Suzuki’s submission of notice of termination back in 2011, with the alliance effectively ending in 2012.
In a separate statement, the German brand Volkswagen, said that it will sell its shares and that is only looking to witness a positive impact on its earnings and liquidity due to this action.
The decision supported VW’s counterclaim against Suzuki, claim which stated that the Japanese automaker had breached parts of the partnership agreement back in 2009.
Suzuki said that “The Tribunal upheld Suzuki’s claim regarding VW’s disposal of its shares in Suzuki and ordered VW to divest forthwith those shares to Suzuki or a third party designated by Suzuki using a method which is reasonably determined by Suzuki.”
Following the court’s decision, Suzuki might actually compensate Volkswagen for its breach of the agreement, with the amount of damages to be assessed and addressed in another stage of arbitration.