Suzuki Motor Corp. announced on September 26, Saturday, that it gained a special profit of $306 million post the sale of its 1.5 percent share in Volkswagen AG to Porsche Automobil Holding SE.
According to The Wall Street Journal, Suzuki will transfer their Volkswagen stakes to Porsche on September 30, Wednesday. Suzuki will take this step as a result of the failed association with the German automaker. Post the transaction, the Japanese automaker will book a gain of $300 million.
More than 50 percent of the Volkswagen shares and the resources of Porsche and Piech families are controlled by none other than the Porsche Automobil Holding SE. The Porsche and Piech families are the offshoots of the founder of Volkswagen Beetle, Ferdinand Porsche.
The association chiefly ended due to Volkswagen losing one-third of its value, following the scandal of emissions from its diesel cars. This led to the failed partnership between Suzuki and one of the world's colossal automakers Volkswagen.
Suzuki said that it had sold 4,397,000 common stocks of Volkswagen which would be transferred on September 30, Wednesday. Porsche, in the meantime, took to its website to confirm its increase in Volkswagen ownership to 52.2 percent post the transfer of shares.
The partnership between the two automobile companies, Suzuki and Volkswagen, started in the year 2009 with the goal to manufacture fuel-efficient small cars. The deal was sealed with Volkswagen's stake of 19.9 percent in Suzuki and Suzuki's 1.5 percent stake in Volkswagen.
Following an order by the London Court of International Arbitration in August this year, Suzuki repurchased its own share of 19.9 percent last week from Volkswagen, Reuters reported. While it ended the long-running dispute between the two companies, the court says that Suzuki had violated the partnership agreement. Suzuki in the meantime responds saying that it may have to compensate Volkswagen for the losses.