Suzuki Motor Corp. said it has reached a settlement with Germany’s Volkswagen AG following the dissolution of their capital and business tie-up.
Suzuki said Wednesday it will pay “a certain amount of money” to Volkswagen, while the German company will withdraw its damages claim against Suzuki.
The settlement represents the end of Suzuki’s action with the International Court of Arbitration in 2011 to dissolve the partnership.
Suzuki did not disclose the amount of the settlement, but said it “will not have any significant impact” on its consolidated earnings for the business year through March.
In August 2015, the court approved the dissolution of the alliance as sought by Suzuki.
Meanwhile, the court allowed Volkswagen to seek damages from Suzuki for not introducing diesel engines made by the German firm for its vehicles.
Apparently behind the settlement is the revamp of Volkswagen’s management in the wake of its diesel emissions scandal, industry sources said.