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.The Japanese company's official statement follows below:
"Suzuki Motor Corporation ("Suzuki") 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 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 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.
The Volkswagen Group has not yet issued a statement on the matter. However, when Suzuki threatened to take the Germans to court last week, VW's reply was: “We are extremely disappointed that Suzuki has taken this step to terminate the agreement. There is no legal foundation whatsoever obliging us to surrender our shares. Volkswagen will continue to hold its stake.”
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