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Volkswagen forced to sell stake in Suzuki

The six-year-long failed marriage between Volkswagen and Suzuki has finally come to an end. Almost. An arbitration panel in London issued its final verdict which, according to a VW press release, cleared Suzuki in terminating the agreement, so VW now needs to get rid of its 19.9-percent share. However, the tribunal's decision said VW performed all of its obligations and Suzuki didn't – the Japanese carmaker should have given VW last-call rights for a delivery of diesel engines, but failed to. The breach opens Suzuki up to damage claim, but so far VW only says it reserves the right to sue. Now that Suzuki has an outside investor to provide funds it meant to get from VW, perhaps both can get back to their reasons for being. The press release is below. Ruling in arbitration proceedings: Cooperation between Volkswagen and Suzuki deemed terminated - Arbitral tribunal confirms Volkswagen met contractual obligations and finds that Suzuki has ordinary right to terminate agreement based on reasonable notice - Volkswagen to dispose of its 19.9 percent stake in Suzuki and expects positive effect on Company's earnings and liquidity from transaction - Arbitrators also find that Suzuki breached its contractual obligations to Volkswagen under the agreement and that Volkswagen has right to claim damages Wolfsburg, 30 August 2015 - An arbitral tribunal in London has announced its ruling in the dispute between Suzuki Motor Corporation and Volkswagen Aktiengesellschaft. As a result, cooperation between the two parties is deemed terminated. The arbitrators confirmed that Volkswagen met its contractual obligations under the cooperation agreement and found that Suzuki has terminated the agreement upon reasonable notice. Volkswagen will therefore now dispose of its 19.9 percent stake in Suzuki and expects a positive effect on the Company's earnings and liquidity from the transaction. The arbitral tribunal also confirmed that Suzuki breached its contractual obligations to Volkswagen under the agreement and that Volkswagen has the right to claim damages. "We welcome the clarity created by this ruling. The tribunal rejected Suzuki's claims of breach and found that Volkswagen met its contractual obligations under the cooperation agreement. Nevertheless, the arbitrators found that termination of the cooperation agreement by Suzuki on reasonable notice was valid, and that Volkswagen must dispose of the shares purchased.

New Suzuki Swift Sport to be lighter and torquier

The Suzuki Swift Sport has been one of the most interesting hot hatches of the last decade, well at least outside the United States. Its first iteration was released in 2005, leaving behind its crummy Geo Metro guise in favor of something more in line dynamically with the segment best. Though it may have been an underdog from day one, the Swift Sport proved itself to be both fun and reliable The new car promises to up the ante with a stiffer structure and a footprint increased courtesy a 20 mm-longer wheelbase and a stance that's 40 mm wider and 15 mm lower. Power comes from a turbocharged 1.4-liter four-cylinder Suzuki cheekily calls the Boosterjet, ditching the old 1.6-liter naturally aspirated inline-4. The downsized, intercooled 138-horsepower turbo engine gives the Swift Sport only four more horsepower than the old unit, but there is a lot more torque available and at lower revs. Another major improvement is a weight loss of nearly 180 pounds -- definitely a big deal in a small car like this -- as the new model tips the scales at less than 2,140 lbs. Suzuki says the feel of the six-speed manual shifter has been improved, too. "It's lighter, sharper, quicker. It's more aggressive and emotive, but we've also refined the elements that make it practical to use every day," said Suzuki chief engineer Masao Kobori. "The clutch feel, the manual transmission shift throw, the seats and steering wheel -- everything that puts the driver at the heart of the experience." Sounds neat, though with Suzuki gone from the U.S. market, it'll remain forbidden fruit for American customers. On the other hand, you can apparently rent these in Germany. Nurburgring rental anyone? Related Video:

It's a hard knock life for a N"urburgring rental car

Rental cars get no respect. They're abused, misused and flogged mercilessly as athletes in Rental Car Olympics. And that's just at your everyday airport rental counter. The torture gets extreme for rental cars thrashed around Germany's infamous Nürburgring.
Rent4Ring expects its customers to drive its cars around the 'Ring with enthusiasm and, in some cases, less skill than the pros. Rent4Ring just recently retired its Suzuki Swift Sport from its fleet and shared the car's two-year-plus lifetime highlights.
The little hatchback made more than 2,800 laps of the 'Ring over three seasons amounting to more than 310,000 miles driven by 457 different drivers. "Some were fast, some were slow. Some were nice to the car, a few were frankly awful," says a Rent4Ring rep.