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Volkswagen Group’ chief Martin Winterkorn says that the recent purchase of a 19.9 percent stake in Suzuki is of “paramount significance” to both automakers. He said that both automakers are planning to start work on joint projects.

“We have set up a joint project office in Wolfsburg to coordinate cooperation,” Winterkorn said. “Work on concrete ideas and vehicle projects will begin in the coming weeks.”

Suzuki previously said that it is in a “comprehensive alliance with Volkswagen.” It said that both companies will work together in every field including hybrid, diesel and electric cars.

Both automakers have plans to produce a competitive small car that they imagine will dominate developing markets.

- By: Kap Shah

Source: AutoCar