Suzuki buys back Volkswagen stake worth 25,000 Crores

Suzuki’s Japanese headquarters have announced that they have officially bought back all the shares that were sold to Volkswagen in the latter part of the last decade. The Suzuki and Volkswagen joint venture was intended to be a part of a campaign to make small and frugal cars jointly mainly for India where Suzuki’s footprint is, as we know, huge.

The joint venture entitled Suzuki to get access to VW technology while the German brand was supposed to improve its awareness in the Indian market with the help of Suzuki. However, the partnership went south when Suzuki signed a deal with Fiat to get the Multijet diesel engines and as a consequence of this new deal, both Suzuki and VW started accusing each other of breaching the contract.

Volkswagen owned 111.6 million shares of Volkswagen according to the Tokyo Stock Exchange filing data worth about $3.8 Billion or 25 Thousand Crore in Indian rupees. The Japanese automaker has officially acquired back the shares it sold to the German giant a few days ago and now plans to concentrate on the future after last months official announcement to part ways.

Following this transaction, Suzuki chairman Osamu Suzuki declared the company will be more careful in the future regarding other possible partnerships with automakers in order to avoid such delicate corporate problems.