Suzuki resolves dispute with Volkswagen at the International Court of Arbitration which started since 2011

Suzuki Motor Corp. said it has reached a settlement with Germany’s Volkswagen AG following the dissolution of their capital and business tie-up.
Suzuki said Wednesday it will pay “a certain amount of money” to Volkswagen, while the German company will withdraw its damages claim against Suzuki.

The settlement represents the end of Suzuki’s action with the International Court of Arbitration in 2011 to dissolve the partnership.

Suzuki did not disclose the amount of the settlement, but said it “will not have any significant impact” on its consolidated earnings for the business year through March.
In August 2015, the court approved the dissolution of the alliance as sought by Suzuki.

Meanwhile, the court allowed Volkswagen to seek damages from Suzuki for not introducing diesel engines made by the German firm for its vehicles.

Apparently behind the settlement is the revamp of Volkswagen’s management in the wake of its diesel emissions scandal, industry sources said.

Find press release below:

Notification Concerning Resolution of Arbitration by Settlement

As Suzuki has reached a settlement regarding the arbitration that Suzuki filed with the International Court of Arbitration of the International Chamber of Commerce on 24 November 2011, Suzuki informs you of the following:

1. History from the Request for Arbitration to the Settlement
As announced in the "Notification Concerning Arbitration Award" dated 30 August 2015, the Tribunal indicated that it would address the issue of alleged damages arising from Suzuki's breach of the agreement claimed by Volkswagen AG ("VW") in a further stage of the arbitration proceedings. Suzuki reached a settlement with VW in regard to such arbitration proceedings on 10 February 2016. Accordingly, the arbitration proceedings have been concluded.

2. Outline of the Opposing Party in the Arbitration
(1) Company name Volkswagen Aktiengesellschaft
(2) Address Berliner Ring 2, 38440 Wolfsburg, Bundesrepublik Deutschland
(3) Position and name of representative Matthias Müller, Chairman of the Board of Management

3. Outline of the Settlement
The terms of the settlement provide for the withdrawal by VW of its claims for damages and the payment by Suzuki to VW of a certain amount of money as the settlement amount.
(Note: Suzuki refrains from disclosing details of the terms of the settlement, including the settlement amount, due to an agreement with VW.)

4. Outlook for the Future
Suzuki is planning to pay the settlement amount during this fiscal year (ending 31 March 2016), but this settlement will not have any significant impact on Suzuki's consolidated results for this fiscal year.

Source:  Japan Times 


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