VW, Suzuki may join hands in eco-car race

Volkswagen and Suzuki are likely to help each other develop an eco-car project in Thailand, according to a source in the automotive industry. A senior official at the Board of Investment (BoI) confirmed that the German and Japanese automakers were negotiating about collaborative possibilities. Suzuki reaffirmed its stand to go ahead with its 7.5-billion-baht (US$232.88 million) eco-car venture in Thailand at a groundbreaking ceremony for a new plant late last year. Volkswagen hopes to tap Suzuki’s established product strength in small cars and Suzuki’s strong market in Southeast Asia under the agreement. The source said it was not clear whether the negotiations under way between Volkswagen and Suzuki would lead to decisions to make eco-cars jointly or separately. (April 12, 2010)