Regular readers will no doubt remember the clash between the Volkswagen Group and Suzuki Motors with the Germans refusing to let go of their 19.9 percent equity stake in the Japanese company and Suzuki taking the matter to the international court.
While the issue remains unresolved, Suzuki has already moved on and today, the company announced that it is further expanding its business relationship with the Fiat Group, which also owns Chrysler.
The two parties reached an agreement for the supply of Fiat’s 1.3-liter Multijet four-cylinder turbo diesel with 75-horses to Maruti Suzuki, which is the Japanese company’s Indian subsidiary.
Fiat India Automobiles Limited (FIAL), a joint venture between Fiat and Tata Motors, produces the diesel engine at a plant near Pune in Maharashtra State.
Under the deal, Fiat will supply up to 100,000 1.3L MultiJet 75hp SDE engines per year, starting from January 2012 and for a maximum period of three years. Fiat noted that these volumes will be in addition to the 1.3L MultiJet SDE engines already licensed by Fiat and manufactured by Suzuki Powertrain India Limited.
The 75HP diesel unit will be used on Suzuki branded vehicles produced in India exclusively for the local market.
