Volkswagen denies Suzuki’s claims on alliance stock

7 years ago by in Business

Suzuki’s claims that its partner Volkswagen should give up its interest in the Japanese company were dismissed on Monday as “unfounded” by the German car maker.

Suzuki wants that the 19.89 percent interest of its shares controlled by Volkswagen should be retransferred in its possession.

”Volkswagen considers the claims to be unfounded,” reads the 2011 Management Report released by the German company on Monday, quoted by Kyodo.

The Japanese auto maker asked for the retransfer of shares last November at the International Court of Arbitration of the International Chamber of Commerce, based in Paris.

Volkswagen bought 19.89 percent of Suzuki’s shares in 2009, for about 1.7 billion euro. The two companies failed to cooperate efficiently and did not launch any commonly produced vehicles since.

Suzuki is complaining that Volkswagen has not provided access to technologies promised under their alliance. The German carmaker has in its turn said that Suzuki breached the contract by deciding in June 2011 to buy diesel engines from Italian Fiat SpA.