Suzuki Motors calls for international arbitration to settle its dispute with Volkswagen, the latter refused to surrender its stake by nearly 20% stake in Japanese automaker.
Suzuki, a specialist in small cars for emerging markets, announced Thursday it had seized the International Court of Arbitration of the International Chamber of Commerce, an organization based in London.
"We see no major financial impact based on the share price, given that VW has already established a reserve of 263 million euros in the third quarter of 2011 to reflect the reclassification of its stake in Suzuki in its balance sheet , "writes Michael Punzet, an analyst at DZ Bank in a note.
Suzuki accuses VW of not having provided a hybrid technology that would have promised to share.If the current leadership of Suzuki does not work with us, then maybe the next generation will, "he said.
A spokesman for the German automaker has confirmed that the company would not yield to the demands of Suzuki.
Action Suzuki closed up 0.92% to 1,533 yen in Tokyo Stock Exchange, while Volkswagen took up 2.90% to 115 euros at 9:35 GMT on the Frankfurt Stock Exchange.