Fiat to supply 1.6L diesel engines to Suzuki

Gasgoo From Dow Jones Newswires

Dow Jones Newswires (Tokyo) - Suzuki Motor Corp. (7269.TO) said Monday it will expand its partnership with Italy's Fiat S.p.A (FI.MI), which will supply 1.6-liter diesel engines to its Japanese counterpart.

Suzuki--which has had a capital alliance with Volkswagen AG (VLKAY) since 2009--will install the Fiat engine in a new model to be produced at a plant in Poland from 2013.

Fiat's subsidiary, Fiat Powertrain Technologies S.p.A, will provide 20,000 diesel engines to Suzuki a year, a Suzuki spokesman said.

Fiat currently supplies 2.0-liter diesel engines for Suzuki's SX4 small sport-utility vehicles produced at the Polish plant. Suzuki and Fiat developed the SUV jointly.

Suzuki also produces the 1.3-liter diesel engine licensed by Fiat in India.

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