Suzuki Vs. Volkswagen: Peacekeeping Intervention
If the war of words and press releases between Suzuki and Volkswagen escalates into a legal duel, then the showdown will not happen in a court of law. Germany’s Handelsblatt learned that the “secret cooperation agreement between Volkswagen and Suzuki specifies arbitration in case of differences.”
Commonly, arbitration is binding in these cases. It may not even come to that. David McAllister, Premier of Volkswagen’s home state Lower Saxony, which holds 20 percent of Volkswagen, intervened over the weekend.
Intervention by high-ranking government officials has a rich tradition in these matters. When Volkswagen and GM were at their throats over the Lopez affair, former Chancellor Kohl settled it with then President Clinton. The fight between Volkswagen and BMW about the rights to Rolls-Royce again was settled by higher-ups.