Volkswagen Must Sell 19% Stake In Suzuki

Volkswagen Stake in Suzuki

Suzuki Motor Corp. and Volkswagen AG must terminate their alliance based on a decision from an international arbitrator. The German car company must sell its 19.9% stake in the Japanese company in order to meet the ruling.

Suzuki started proceedings against the company four years ago, claiming that its alliance had ended in May 2012.

The arbitrator also ruled that Suzuki had breached the alliance agreement. Any possible damages would likely be addressed in future arbitration proceedings, Suzuki said.

The company’s entered into an agreement in 2009, at which time Volkswagen purchased its 19.9% stake for approximately $1.9 billion. The two company’s almost immediately faced off over cultural differences.┬áSuzuki soon after filed for international arbitration, asking Volkswagen to sell back the stake.

“We welcome the clarity created by this ruling,” Volkswagen said in a statement.

“Suzuki is satisfied with this conclusion. Through this decision, Suzuki was able to achieve its main objective in initiating the arbitration procedures,” Suzuki Chairman Osamu Suzuki added.

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Written by Peter Mondrose

Peter Mondrose

Peter Mondrose is the Editor-In-Chief at BusinessPundit. He received his degree in Economics in 1998 and a second degree in Journalism in 2004. He has served as a financial adviser, market trader, and freelance journalist for the last 11 years. When he's not investigating market conditions and reporting on workplace news, he can be found traveling with his wife, dog, and laptop. He can be reached at