Volkswagen to team up with Suzuki for ultra compact car

According to a source familiar with the matter, Volkswagen is considering a cooperation deal with Suzuki Motor to boost the German automaker’s expertise and reach in ultra compact cars. The source said Volkswagen is considering a new model that would fit into its upcoming “New Small Family,” which currently consists of the Volkswagen Up! concept.

“You have see it through an Asian perspective, particularly a Japanese one. There are vehicle sizes and classes that cannot be found here,” the source said. “You only see them at the Tokyo motor show but it is undoubtedly an interesting segment, just have a quick look at the developing markets like India. It’s correct that there is a gap there that could be closed.”

Volkswagen is apparently looking to take a 10 percent stake in Suzuki that could launch a new model that would fit below the Up! compact family car.

A Suzuki spokesman said he did not hear anything about a potential tie-up, while Volkswagen declined to comment.

– By: Omar Rana

Source: Reuters