Sunday, August 30, 2015

Odd Todd's Blog of the Week 35


VW and Suzuki settle four-year dispute


The article on BBC is about how after Suziki has wanted VW to sell back their shares after buying them in 2009, where they had the plan to collaborate their ideas on technologies whcih failed after Suzuki had the impression that VW was witholding important informations, and they have now finally settled to an agreement where Suzuki will buy back the share of VW at a resonable price.

This is an great example of how firms, that are in the same branche, try to form a partnership where they then share information and help each other enter the market of the other. 

In the case of VW and Suzuki, this partnership didnt work out, because one of the parties was misstrusted and was accused of witholding information, which they then apparently used for their cars and didnt give Suzuki the possiblility to use them for their cars. Another factor was that VW was a stakeholder of Suzuki, which meant that (of course depending on the kind of stakeholder they are) they had an influence on Suzuki, however Suzuki, not regarding technological information, had no influence on VW at all. 

Suzuki then said that this " divorce " would have no affect on their business, or profits until the end of this year. 

This did cost both parties a lot of money, due to court costs since 4 years, and all based only on the possibility that VW could have withhold information from Suzuki, which they however objected. 

Suzuki will never "re-marry" enter a partnership whith VW again.

2 comments:

  1. 2/4 - links to the course and the CUEGIS concepts are implicit at best. Although an interesting article could you have made a link to the current topic of sources of finance? Are you confusing stakeholder and shareholder too? Please make sure that spellings and grammar are accurate to ensure you are getting your point across.

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