TOKYO (TR) – Japan’s Suzuki Motors called on German auto giant Volkswagen to sell back its shares after it announced it’s ending their two year alliance, according to Agence France-Presse.
Suzuki’s board approved the action Friday, AFP said. It demanded Volkswagen sell the 20% stake, or 112.21 million shares it owns, back to the small-car maker or a third party of its choosing, AFP reported. Suzuki said it will seek arbitration if Volkswagen fails to sell back the shares by November 2012.
Suzuki complained in September Volkswagen had failed to provide the technologies it promised prior to their $2.3 billion (176 billion yen) tie-up in 2009, according to the news service. “In the absence of VW’s cooperation and given its failure to do what was agreed, there is no basis for the partnership to continue,” AFP cited the Japanese automaker’s CEO, Osamu Suzuki, as saying.
Volkswagen rejected the charge it had failed to live up to the deal and told Dow Jones Wire it planned on keeping the stake in the Japanese automaker, according to AFP. The German company originally entered the deal seeking to develop small cars for emerging markets with Suzuki’s know-how.