Volkswagen inked a deal to acquire a 19.9 percent stake in Suzuki just days ago, but the two automakers will begin work on joint projects early this month. Volkswagen – Europe’s largest automaker – partnered with Suzuki to gain access to the automaker’s expertise in small vehicles.
Exact details of the VW-Suzuki joint projects have yet to be revealed, but both companies will begin work in January, with more in-depth meetings set to kick off thereafter. “We generally understand what we want from each other, through information exchange up to now,” Suzuki CEO Osamu Suzuki told Reuters.
“Actual, detailed execution — with our people going there and their people coming here — will be after January,” he added.
Earlier reports suggested the first vehicle to be born of the joint-venture would be a variant of Suzuki ’s all-new Alto model, but R.C. Bhargava, chairman of Suzuki’s India operations, has since retracted his statement, clarifying “ Volkswagen could outsource a small car” from Suzuki’s India division.
Suzuki – Japan’s fourth largest automaker — is experienced in producing small cars, particularly those with engines 660cc or less.
