Business

VW and Suzuki settle four-year dispute

Suzuki chairman Image copyright Getty Images
Image caption Suzuki's chairman Osamu Suzuki said the ruling left him feeling "refreshed"

A court ruling has settled a four-year dispute between VW and Suzuki over their failed partnership.

The International Chamber of Commerce ruled that VW should sell its 19.9% stake in Suzuki.

Japan's Suzuki first requested the sale of VW's shares in 2011 after a plan to collaborate on new technology failed, but the German firm had refused.

Suzuki's chairman said it "used to feel as if a small bone were stuck in my throat...I feel so refreshed now".

"It was a precious experience," Osamu Suzuki said, " I learned there are different types of companies."

Asked about future partnerships with VW he said "you will not remarry someone you have divorced".

For its part, VW said: "We welcome the fact that there is now clarity. The co-operation between the two companies has now been ended."

The two companies had agreed to work together on fuel efficient cars but Suzuki accused VW of withholding information it had promised to share, while VW objected to a Suzuki deal to buy diesel engines from Fiat.

As part of the 2009 agreement, VW bought the Suzuki stake as a way of it gaining access to the Indian market for small cars, where the Japanese firm had a leading position.

Suzuki said it planned to buy back the shares from VW at a "reasonable" price, which one analyst told Reuters was likely to be Friday's closing price of 4,151.5 yen ($34.1).

In a statement, Suzuki said it did not foresee any financial impact on its full-year earnings.

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