Suzuki drags Volkswagen to International Court

The final nail in the coffin has been hammered and the divorce is about to get mighty ugly. After putting a end to the relationship, Suzuki wanted VW to sell its 19.9% stake. However, VW refused to acknowledge Suzuki's request. As a result, Suzuki has filed for international arbitration in London with the International Chamber of Commerce (ICC’s) International Court of Arbitration. The partnership turned bitter because VW did not give Suzuki access to the hybrid technology which it promised to share when forming the alliance. At the same time, VW accused Suzuki of violating the agreement by procuring diesel engines from Fiat. After the debacle, Suzuki believes it is urgent to terminate its business tie-up with VW, feeling a delay may adversely affect its cooperation with other companies. Suzuki has also started distancing itself from VW when it comes to hybrid technologies. It is reported that Suzuki is sorting help from Mitsubishi to power their hybrid cars. However, VW is still adamant that no legal rules compel it to sell its stakes in Suzuki. The company is prepared to go through an arbitration process that could take up to two years. Source: TheEconomicTimes.IndiaTimes.com

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