Suzuki and Volkswagen’s business tie-up has officially ended with the Japanese automaker confirming its reached a settlement with the VW Group regarding a damages claim.
In 2011, Suzuki took Volkswagen AG to the International Court of Arbitration as the German conglomerate refused to sell back 19.9 per cent of Suzuki’s shares. It took the international court the better part of four years to conclude that VW needed to pay back Suzuki and a further six months for a settlement to be agreed upon.
Suzuki hasn’t revealed how much the settlement is worth but confirmed that it won’t have a significant impact on its earnings.
Some claim that the settlement was reached thanks in part to the reshuffle of Volkswagen’s management due to the diesel emissions scandal.
Interestingly, the Suzuki and Volkswagen saga may not end here with the court concluding that Volkswagen can seek damages from Suzuki for not using its diesel engines and instead buying powertrains from the Fiat Group.