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Already questions were being raised about Nissan’s continuation of sourcing cars from Suzuki, following the Japanese company

Suzuki selling one-fifth of  itself to VW. Nissan had to go in for a new partner who could provide the opportunity to build new compact cars at cheaper costs, which would take on VW’s future plans with Suzuki,” said a research analyst with a reputed international firm.

According to reports, Volkswagen had already outlined ‘dozens’ of projects with Suzuki which primarily involved joint development of compact cars and sourcing of technology for making compact engines used in such small cars.

Osamu Suzuki, chairman and chief executive, Suzuki Motor Corporation, had recently stated that both VW and Suzuki had agreed to develop a competitive small car, the discussion for which had already begun.

Nissan had, only last year, raised its sourcing target from Suzuki to 54,000 units per annum of the Pixo, up from 30,000 units planned earlier, thanks to a robust demand for ‘city cars’ (a category under which the Pixo is sold) in Europe.

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