The long running legal battle between Volkswagen and Suzuki is finally coming to a close as an arbitral tribunal has decided the Japanese automaker can terminate the ill-fated partnership.

The long running legal battle between Volkswagen and Suzuki is finally coming to a close as an arbitral tribunal has decided the Japanese automaker can terminate the ill-fated partnership.

Originally announced in 2009, the partnership quickly soured when Suzuki announced plans to purchase diesel engines from Fiat. Volkswagen considered this an infringement of their original agreement and in the end the  arbitrators agreed.  

As a result of the court's decision, Volkswagen will have to sell their 19.9 percent stake in Suzuki.  Suzuki will also have to pay damages to Volkswagen for breaching their contractual obligations.

In a statement, Volkswagen said "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. This decision is based on the principle that a contract may be terminated upon reasonable notice. Volkswagen expects a positive effect on the Company's earnings and liquidity through the sale of the Suzuki shares."

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