Suzuki Motor Corporation and VW Group are reportedly in private negotiations to either revive their stalled 2009 cooperation pact or quietly resolve a two-year legal battle over the agreement — which fell apart in 2011 with considerable acrimony before any joint projects had been initiated.
To seal the original deal, VW acquired a 19.9 percent stake in Suzuki for £1.46bn and Suzuki bought about £650m-worth of VW shares. But when this fruitless alliance disintegrated, Suzuki initiated legal proceedings in London’s International Arbitration Court to force the Germans to swap their respective shareholdings. If no compromise is achieved, the imminent verdict from that ongoing litigation will be actioned.
However, analysts say both companies would still benefit from joining forces to develop ultra-small cars for emerging markets and share relevant technology, so pressure to reach an equitable compromise must be strong. The fact that VW has also become a motorcycle manufacturer through its Ducati acquisition since the dispute kicked off will have no bearing whatsoever on any outcome.
Speaking to a Bloomberg reporter, Eric Felber and Ei Mochizuki — respectively corporate affairs spokesmen for VW and Suzuki — declined to comment on any possible discussions between the two companies.