Suzuki-Nissan tie-up coming to an end

Article by Christian Andrei, on August 29, 2010

With Volkswagen linking up with Suzuki, it basically means that the joint project on the Suzuki Alto/Nissan Pixo will conclude with the ending of its current car's life cycle. Nissan is intent on replacing the Pixo, whether it's through entering another tie-in or by creating its own model. A source said that Nissan will find it difficult to remove this segment since the Pixo has done too well

As part of Nissan's plan to break into new market sectors, it has started a long-term project to produce a VW Golf rival, as part of its plans to enter new sectors of the car market and get back ground occupied previously by the Nissan Almera.

VW Group chief Martin Winterkorn had stated that the recent buy-in to Suzuki is of "paramount significance" to both manufacturers.

Late last year, VW had taken a 20% stake in Suzuki. Back then, VW chief Ferdinand Piech said that what appealed to him was the Japanese firm's cutting-edge supermini technology, better presence in emerging markets - and motorbikes.

This comment fueled rumors that the VW Group is thinking about building two-wheeled vehicles to accompany its growing range of cars, vans and trucks.

Winterkorn announced that VW and Suzuki have plans to work on joint projects. He added that for the two companies to coordinate, a joint project office was set up in Wolfsburg. In the next few weeks, work on concrete ideas and vehicle projects is expected to start.

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