A couple of months we brought a news to you regarding the interest being showed by Maruti Suzuki in Volkswagen group and even reported about Maruti cars wearing VW and Skoda badges and now the story has been continued as Suzuki corporation is all set to sign sale agreement with VW. But what is more interesting is that the cars from the former are supposed to sport engines suplied by VW group.
It certainly sounds interesting and believing in the reports, Suzuki is sourcing engines from the German giant for its upcoming Maruti Suzuki Kizashi which is due for its launch in February 2011.
Prior to the agreement between VW and Suzuki, the latter had been in an agreement with General Motors for sourcing engines and transmissions for its mid size cars, but was later discontinued. This not only confirms that Suzuki is working alone but also brings in the need of an engine sharing deal and hence being a reliable manufacturer, VW is said to be the one who is going to work with the company from now onwards.
Steve Younan, Director-marketing and product planning for American Suzuki Motor Corp said, “Our whole product cadence got pushed back because of this relationship. We had to slowdown our process to see what we could take advantage of and what they could take advantage of. It’s taking longer than we thought,”
The only possible reason for VW entering in a deal with Suzuki is the former’s plans of grabbing the no.1 place by replacing Toyota and Suzuki could help VW reach that position with its supremacy in the small car segment and in return VW will provide a variety of engines for Suzuki’s mid sized sedans.