Suzuki Motor Corp and Volkswagen AG will start the ball rolling on joint projects from around January 10, after the year-end holidays, Suzuki Chief Executive Osamu Suzuki said on Wednesday.
Japan's fourth-largest automaker and Volkswagen last week announced a comprehensive tie-up that will see Europe's top automaker take 19.9 percent of Suzuki.
"We generally understand what we want from each other, through information exchanged up to now," CEO Suzuki told reporters at the launch of the new Alto microcar in Tokyo.
"Actual, detailed execution -- with our people going there and their people coming here -- will be after January," he said.
Suzuki said the new partners have agreed they want to develop a competitive, small car, seen as key to taking the lead in developing countries. He declined to elaborate.
Citing a top official at Suzuki's Indian unit, Maruti Suzuki India, local newspaper Economic Times said last week Volkswagen and Suzuki may develop a small car that would cost 200,000 to 250,000 Indian rupees ($4,300-$5,400).
Clarifying his comments, Maruti Chairman R.C. Bhargava said the parent company, not Maruti Suzuki, was speaking directly with Volkswagen.
"What I have said is, one of the possibilities is that Volkswagen could outsource a small car from us," he told Reuters.
Analysts said joint development of a small, low-cost car would be mutually beneficial, giving Volkswagen the coveted know-how of profitably making tiny cars and Suzuki the economies of scale to be more cost-competitive.
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