Suzuki, GM to Part Ways in Hybrid Development

Suzuki Motor Corporation finally decided to cut its ties with General Motors in the hybrid sector and fuel-cell technologies and concentrate its efforts on the Volkswagen alliance formed late last year. All projects started with General Motors would end in February, Suzuki announced last week according to a report by Reuters, with new ideas to continue with Volkswagen's support in every single area.

"Suzuki is in a comprehensive alliance with Volkswagen. In every field including hybrid, diesel and electric cars, we will carry out joint development with them, or we will learn from them," Osamu Suzuki, chairman and chief executive, said at the briefing in Hamamatsu, central Japan.

Volkswagen took control of a 19.9 percent of Suzuki, with the two manufacturers to develop several projects, including an affordable model for the Indian market.

"The companies plan a joint approach to the growing worldwide demand for more environmentally friendly vehicles. The management of Volkswagen and Suzuki have concluded that the complementary strengths of each company make for a perfect fit in exploiting their respective advantages as well as rising to the challenge of the global market," VW said in a release back in December.

Suzuki, together with Volkswagen, will build a small and cheap car in order to expand their sales in developing countries. According to the Indian newspaper Economic Times quoting a top Maruti Suzuki India official, VW and Suzuki’s small car will cost $4,300-$5,400. Suzuki said: "Suzuki Motor has authority over this, not Indian subsidiary Maruti."

"We generally understand what we want from each other, through information exchange up to now," Suzuki CEO Osamu Suzuki told reporters at the launch of the new Alto minicar in Tokyo.