Suzuki cuts ties with Volkswagen

Why do they have to sell back anything? They bought it, they own it.

All depends on the ink in the contract. I'd love to hear an insider version of how this meltdown occurred.

can we get more info on the VW side, or was it reported earlier. Just want more detail on both sides. This is not good for JP specially in light of the whole Olympus situation and the TPP talks.

It would be sad but funny if VW was asking too many questions? 20% share is a powerful share. And Suzuki appears desperate to terminate that. While throwing away a door into the European market. Does not "appear" to be a bright move.

VW spent $2.5 billion. VW taking on the Suzuki and its allies in the Japanese old establishment might be quite a battle. VW has plenty of cash and patience but that does not mean that a hostile takeover would make sense. It might be wiser for the two sides, if they are irreconcilable, to agree calmly to separate. VW is still very keen on Suzuki, and will not want to sell its stake. It is likely, even if it takes time, to seek some sort of a combination.

Sounds like someone hit the panic-button after not reading the contract properly. Ahem, Suzuki.

Here in America... VW has a reputation for junky cars.... Would never own one if i had a choice.

What a pitiful soap opera. I have no idea what Suzuki hoped from an alliance with VW that way. Generously allowing them to pay 1.7 billion euros for its stakes in Suzuki in return of being permitted to transfer them their first class hybrid technology? VW is not that moron.

Good old uncle Osamu thought he can control everybody and climbed bit too high and got dizzy now. He has frenzy again. That often happens with very old men, they start cherishing great long range plans, plant trees to see how they grow etc, but they never finish them. Uncle Osamu seems to lost his sober judgment. They might try to drag VW into the courtroom and I guess they will prepare the arbitration by paying heavy millions of bribes in the background in order to arrange some favorable outcome, but at this time they might be forced to swallow the bitter pill. Nice cure tasting their own medicine, arrogance and violence.

I hate Suzuki as a company but I liked their motorcycles. That's what they should be engaged with for the rest of their wretched life, producing motorcycles, outboard marine engines and motorized wheelchairs.

Otherwise, I am sorry to mention but the face Yasuhito Harayama in the picture is truly resembles the front of Suzuki Swift. Good idea, just to be harmony with his company. I am not going to be malicious with that remark, it just came to my mind seeing his face.

Amendment (bad English grammar sorry)

Otherwise, I am sorry to mention but the face of Yasuhito Harayama in the picture truly resembles the front of Suzuki Swift. Good idea, just to be in harmony with his company. I am not going to be malicious with that remark, it just came to my mind seeing his face.

A cat and mouse game of "who can suck the most knowledge from the other"... and when the Germans got tired of the "I can't speak german or Japanese" attitude of the "take take take" mentality of the Japanese engineers and stonewalled them, the Japanese said "f" it... if we can't use and abuse you, were out of here.

I don´t it either. How can he force somebody else to sell shares? If VW bought them, they have them. If he does not like to be a publicly traded company, then he should not have issued shares.

Drama

Strange - Suzuki shows very aggressive behaviour (purchase of FIAT Diesel instead of VW's TDI), then they are those who complain. As far as I remember, VW always resorted to calm talks "behind closed doors", and Suzuki were always coming public with such explosive statements.

In the end, VW gives them the finger and just waits for the takeover chance (if not this year then the next one, or the next next one, and so on)...

@ebisen

Takeover is possible, though I only can imagine hostile takeover with far reaching effect.

Mr Suzuki is getting a bit above himself making demands of VW. As one of the largest, if not the largest, shareholders VW could demand Mr Suzuki's resignation at the next shareholder meeting, or make life difficult in any number of ways.

It seems that Japanese CEOs don't understand that once they sell shares in their companies they are no longer personal fiefdoms to use as they please. I remember the furore when Livedoor had the audacity to buy shares in that radio station. The radio station directors were outraged that someone might try to take over the company by buying their shares. Then we have Olympus directors lying through their false teeth and causing shareholders to lose 80% of their investment in days. I'm still waiting for the arrests for fraud; it could be a long wait.

I think the lesson is: don't buy shares in Japanese companies.

Scrote (like the name) yes the lesson is don't buy shares in Japanese companies. 1 lowest returns in the OECD 2 Oversite and enforcement are pathetic. 3 It's a non profit environment.

Until the forex rate reaches Y25 per $..

Suzuki may just have made a big mistake, which may cost them more than they ever imagined possible.

@Scrote

It seems that Japanese CEOs don't understand that once they sell shares............

They do understand very well, I know many Japanese companies (sorry for not mentioning names as it could be considered irrelevant to the topic) who did the same and reputed foreign companies now owned by Japanese companies keeping their original names and practically only very few people know that they are actually Japanese companies now.

They did exactly the same what VW did, bought shares and took over the company.

They know it, they just have a one way typical hypocrite mentality, a kind of, "we can do it of course we payed for your shares our hard earn money, we take over your company, and you cannot do it, please give us back our shares that you bought, in the name of honesty and don't jeopardize our company that we built with our hard earned money"

That's they are. Ridiculous indeed.

p.s I forgotten to mention the most obvious, uncle Osamu knows this share buying business the best as that's how he put his hands on Maruti.

He was successful stomping on the poorer and weaker, now he underestimated his influence and power and thought he is ready for the big boys.

underestimated = overestimated