Volkswagen Ag., on Thursday in an emailed statement said the company will continue to hold its stake in Suzuki Motor Corp., even if the Japanese automaker started the international arbitration procedures in a try to buy back its 20 percent stake.
“We decisively reject all allegations,” a Volkswagen spokesman said.
“Volkswagen categorically repudiates any allegation. We are extremely disappointed that Suzuki has taken this step and are at a complete loss to understand this action.
There is no legal foundation whatsoever obliging us to surrender our shares. Volkswagen will continue to hold its stake in Suzuki Motor Corp.
We feel confident and are not unduly concerned about the proceedings.”
Suzuki, which has accused its German partner of withholding hybrid technology it promised to share, on Nov. 18 declared its two-year alliance with Volkswagen Ag. over and demanded a return of the 19.9% stake that the German group holds.
“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.