Suzuki has agreed to sell all of its shares in Volkswagen to Porsche. The move completes the dissolution of their failed partnership after four years
Suzuki has agreed to sell all of its shares in Volkswagen to Porsche. The move completes the dissolution of their failed partnership after four years of arbitration.
The Japanese carmaker will transfer its 1.5 percent stake in VW to Porsche on Wednesday.
Suzuki expects the move to yield 36.7 billion yen (270 million euros) in special profit. Last week it repurchased its near-20 percent stake in Volkswagen.
In 2009 the two companies agreed to cooperate in emerging markets and work together to develop eco-friendly technology.
But relations between Suzuki and Volkswagen became strained and in 2011 the Japanese carmaker filed a complaint, arguing the contractual cooperation from VW hadn’t been forthcoming.
The London Court of Arbitration approved the end of the tie-up last month.
Suzuki says it still intends to ditch its stake in VW despite the German carmaker’s plunging stock price.