“The talks with Volkswagen are activity on at a all-around akin and there is still no bright picture. There is a achievability of an OEM (original accessories manufacturing) accumulation arrangement with them, like we accept with Nissan,” said Maruti Suzuki managing administrator Shinzo Nakanishi to Indian bi-weekly HBL.
The Economic Times additionally appear Nakanishi as adage that there was absolutely no achievability of belvedere administration due to Volkswagen’s assembly and artefact development costs actuality too high. This wouldn’t assignment for Maruti who would like to aftermath an end artefact that’s abundant added affordable to its ambition market.
Volkswagen AG bought a 20 percent pale in Suzuki in January in the bulk of $2.5 billion. The actuality that Maruti has done such a accord afore with Nissan (which doesn’t authority a pale in Suzuki) will be added acumen for the accord to be plausible.
Maruti Suzuki accept a three year arrangement to accumulation Suzuki A-Star hatchbacks which are rebadged as Nissan Pixo’s for the European market. This arrangement exports a minimum of 35,000 units a year and is due to expire in 2011.