Volkswagen Eyes Suzuki Alliance

The economic turmoil has seriously shaken the auto sector and, beside the well-known sales of popular brands - Opel, Saturn, Saab and even Volvo - automakers around the globe tend to join forces to cope with the crisis. Curiously, Volkswagen, one of the carmakers who haven't struggled to deal with the recession, is now aiming to establish a new agreement with Japanese automaker Suzuki.

The goal of such a deal? The German manufacturer plans to increase its experience in the ultra small cars sector, a source close to the talks told Reuters.

"You have see it through an Asian perspective, particularly a Japanese one. There are vehicle sizes and classes that cannot be found here," the person 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."

Furthermore, some voices are even claiming that Volkswagen could takeover a 10 percent stake in Suzuki. "It's not that far along," the source said. "Volkswagen are first discussing the possibilities of a cooperation".

As for the ultra small cars, Suzuki is currently building a 660cc vehicle that helped the company become the second manufacturer in the domestic market the past financial year, as the aforementioned source noted. And to give you an idea on the sales figures, Suzuki is performing pretty well in emerging markets such as India, where Maruti Suzuki holds the lion share in the auto industry. The Alto, a model built in India, is one of the best selling models in the country.