REPORT: Volkswagen considering stake in Suzuki for micro-car alliance

Suzuki Alto Lapin - Click above for high-res gallery
According to reports from Reuters and Manager Magazin in Germany, Volkswagen is keen to purchase a 10 percent stake in Suzuki in order to cooperate on future small cars for emerging markets. In its home market of Japan, Suzuki is the second-largest automaker (behind Toyota) and dominates the tiny Kei car market alongside Toyota-owned Daihatsu.
These miniature 660cc vehicles are extremely popular in Japan's dense urban settings and Volkswagen reportedly believes this class of automobile holds great promise for emerging markets. In India, for example, Tata Motors has seen a great deal of success with its diminutive Nano, which is billed as the cheapest car in the world.
Suzuki already enjoys a measure of success in Tata's home turf, where its Maruti Suzuki subsidiary offers the Alto, which has been the best-selling automobile in India since 2004. At this time, both Suzuki and Volkswagen are declining comment, but VW chairman Ferdinand Piech has praised the Japanese automaker numerous times in the past.
Gallery: Suzuki Alto Lapin
[Source: Retuers]
Reader Comments (Page 1 of 1)
guyledouche 5:06PM (6/25/2009)
I wish to god that our bass ackwards gov't would just get off their high horse already and allow kei class vehicles into the US. I know many of you are thinking "well hey those things would be squashed by my jeep in an accident". OH WELL!!! they are extremely well designed, extremely fuel efficient, and feature all of the comfort and accessories that any of our modern and huge american vehicles offer, just half the size. Why is it our Gov't's responsibility to not allow these vehicles, but we are allowed to own and operate motorcycles??
Any answers? Its called taking a calculated risk, and I would be quite willing to do so.
The last time I was in Japan, we rented a Suzuki HiJet truck and it was fantastic. I was pissed off when we were leaving and I had to give the truck back.
Sorry, just had to vent. I know itll never happen here. Ill just keep dreamin.
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jondoh 10:13PM (6/25/2009)
Not allowing the Kei cars is just protectionism plain and simple. But even if they were allowed, you can be sure the good old IIHS would be the first to declare that they're not safe-- like they tried to do with the smart car. Not that it will matter in 2 years when gas is back above $4 a gallon. After that, you can be sure that people will be begging for these cars.
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David Martin 8:14AM (6/26/2009)
Kei cars haven't really caught on in the UK. They compromise performance a bit too much.
What is very popular though is the next segment up, where you have engines of around 1-1.4litres.
For instance, I drive a VW Polo, which is the next smallest model below the Golf, Rabbit in the US.
They are not offered for sale in the US
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