By on June 27, 2011

In what could possibly raise eyebrows in Wolfsburg, Suzuki is getting  cozier with Fiat. According to The Nikkei [sub], Fiat will supply Suzuki with 20,000 to 30,000 1.6-liter diesel engines per year. The engines will be built in Europe. Suzuki plans to use the engines in the SX4, which was jointly developed with Fiat, at Suzuki’s assembly plant in Hungary.

Suzuki sells the SX4 under its own brand and supplies it to Fiat, which sells it as the Sedici. Suzuki also builds a 1.3-liter Fiat diesel engine under a licensing agreement in India.

This might not make Volkswagen happy, because they think they are the masters of the small diesel universe. Suzuki will likely claim that it had signed a cooperation contract with Fiat in 2005, covering vehicle development and engine production. That was years before Suzuki and Volkswagen tied the knot, and contracts are contracts, no?

Sure, but there is increasing uneasiness in Wolfsburg that the marriage with the Japanese bride has been childless so far, and if the bride continues to play footsie with the beau from Torino, the Germans could get jealous.

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