It is now becoming apparent how Volkswagen’s partnership with Japanese automaker Suzuki and it’s plans to become the world’s largest automaker are intertwined. Outlined in a VW employee newsletter is an interview with VW board member Detlef Wittig, who says that the German automaker will rebadge Suzuki models as Volkswagens. The vehicles could then be sold in emerging markets, helping VW twofold.

First, it’s likely that Volkswagen could sell a VW-badged Suzuki at a slight premium, allowing for better profits. Plus, it brings into play VW’s larger plan to utilize another automaker’s success in the small car market to its advantage. (Volkswagen, we should point out, has had a tough time making a success in the small car market and expects to face even larger challenges in building mini cars, as VW production costs tend to be quite high).

Suzuki may even take over all future mini-car projects, using its expertise in the area. This, after all, is one of the main reasons VW purchased a 20 percent stake in Suzuki last year. Currently VW is looking to produce a line of Up! small cars (shown above) and plans to introduce an entire lineup of even smaller vehicles, with Suzuki’s help, after that. “Where VW’s portfolio ends, Suzuki’s begins,” said Wittig.

So what does Suzuki get out of this? Well, according to a report by Car & Driver, the Japanese automaker is expected to get access to VW’s new hybrid technology, even delivering a hybrid SX4 in the near future.

[Source: Car & Driver]

Despite competition from Tata, known for building the world’s cheapest car, Suzuki has no plans to compete head-to-head with the Indian automaker. Currently Suzuki has a stranglehold on emerging markets like India, but Tata is looking to take a chunk of that with the Nano, which undercuts the already inexpensive Suzuki models.

Slamming the Indian-made Nano, Suzuki boss Osamu Suzuki said that building an even lower model vehicle is not a part of the company’s plans as it, “wouldn’t be a car anymore.”

The main reason that Suzuki is letting Tata have the lower end of the market is that it feels an even lower model would devalue the brand. The Japanese automaker cites concerns that such a model would require reduced safety and comfort, two areas where it’s not prepared to perform cuts.

[Source: AutoCar]

Suzuki is looking to get back into the U.S. auto market in a big way and to do so it launched the Kizashi mid-size car last year to compete with hallmarks like the Toyota Corolla and Honda Accord. Initially offered with only a 4-cylinder, Suzuki doesn’t want anyone walking away from its dealerships wanting for power and so the automaker is expected to deliver a more powerful V6 model. A Suzuki rep told the folks at LeftLaneNews that Suzuki has, “more exciting Kizashi product news to share” in New York, leading to the obvious conclusion of the V6 model’s debut.

When the 4-cylinder was launched, Suzuki also showed off a V6 prototype car, which featured a 3.6-liter V6 making 260-hp. The prototype also included a more aggressive bodykit, which we expect will be a part of the high-end V6 model’s package.

We quite liked the 4-cylinder model when we reviewed it last year, which offered a more dynamic driving experience than most mid-size sedans, making us eager to see how the V6 delivers.

We’ll be on hand to bring you live coverage of the New York Auto Show starting March 31st.

[Source: LeftLaneNews]

HKS Kansai Service, a workshop in Japan that is part of the HKS group, had an impressive display of vehicles and products showing off their tuning prowess. Included among them were a previous-generation Skyline R34, a brand new R35 GT-R and EVO X. And let’s not forget the least of the cars on display, a tricked-out Suzuki Swift. HKS is sure to be planning parts for subcompacts like this, with news that Mitsubishi is planning to bring the Swift to North America.

We were surprised to see that tuning Japanese car’s isn’t just a one way street with Japanese tuners buying only made-in-Japan parts. In fact, many of these HKS cars sported carbon fiber aero kits and accessories from SEIBON North American.

GALLERY: HKS Kansai Service display at 2010 Tokyo Auto Salon

A week ahead of the Detroit Auto Show, New Delhi’s Auto Expo is increasingly becoming a big deal – especially in regards to small cars. With India likely to become one of the world’s largest markets, automakers are eager to get their foot in the door. One manufacturer that already has a huge presence in the county is Suzuki and its looking to stay competitive and current, looking to expand its product offerings from more than just mini-cars, to functional people-haulers.

This week at the Auto Expo 2010 show in New Delhi, Suzuki showcased just such a vehicle, the R3 MPV concept. Based on a stretched version of the same platform that underpins the SX4, this MPV seats six and is expected to be powered b one of Suzuki’s small (1.2-liter or 1.4-liter) gasoline four-cylinder engines, while a Fiat-sourced 1.3-liter diesel is also a possibility.

Suzuki is rumored to have already given the R3 MPV the green light for production, with sales starting in 18 to 24 months. While deisgned for the Indian market, with the increasing popularity of MPVs in other markets, including North America where Mazda has had success with Mazda5 and both Ford and GM are looking to introduce MPVs, the R3 could become more of a global vehicle that Suzuki had initially planned.

GALLERY: Suzuki R3 MPV Concept

[Source: AutoCar]

Before Mazda solidified its deal to buy up a 20 percent stake in Suzuki earlier this week, it was considering adding a different Japanese automaker to its lineup. A report in Automobile magazine dissects the decision by VW and why it eventually didn’t go with Mazda, which is now almost completely independent of Ford.

Despite being an attractive, performance-oriented brand, Mazda has a lot of overlapping product with Volkswagen and has very little experience in the small car and mini-car market - something that Suzuki most certainly does. Suzuki also has impressive penetration in emerging markets like India.

In addition, Mazda isn’t the greenest of automakers as the brand’s focus on performance has often resulted in lower than average fuel economy ratings – especially on important high-volume cars like the Mazda3. It also only recently announced a program to invest in hybrids, putting it several years behind much of the industry.

Mazda has been in search of a new partner ever since Ford sold off 22 percent of its stake in the company earlier this year, reducing its share of the Japanese automaker to just 11 percent. Just this week Ford president Mark Fields made Mazda’s situation all the more urgent, announcing that from now on the two automakers would develop platforms independently. This is a huge issue for Mazda as vehicles like the Mazda3, CX-7 and CX-9 are based on Ford products.

Mazda hasn’t officially made any comment in regards to finding a new partner in the auto industry, but some analysts have suggested it will need to do so in order to survive.

[Source: Fourtitude]

Months of rumors and a more credible report yesterday have culminated in the official news that Volkswagen will take a 20 percent share in Japanese automaker Suzuki, worth $2.5 billion. Volkswagen has its sights set on becoming the world’s largest automaker and with Suzuli’s small-car expertise, it hopes to make a large expansion into developing markets, like India.

The news comes just a day after VW officially took a 49.9 percent stake in Porsche. Unlike Porsche, Suzuki will remain independent as VW would need closer to 30 percent to take a controlling share. Currently Volkswagen also owns such important automakers as Audi, Bentley and Lamborghini. If VW were to take a controlling share, it would make the German automaker the world’s largest with combined sales of 4.145 million units, compared to Toyota’s 3.564 units.

Suzuki CEO and patriarch Osamu Suzuki was clear that his company will retain its individuality and identity. “I don’t want you to misunderstand: Suzuki is not becoming a 12th brand for Volkswagen,” he said. “I don’t want other folks telling me how to do things.”

Suzuki has been looking for a strategic partner as ties between it and General Motors collapsed this year. In return, Suzuki will also buy a 2.5 percent share in VW. Suzuki will also get hybrid and electric car technology from Germany’s largest automaker.

In a statement about the partnership, VW said that, “In terms of product portfolio, global distribution and manufacturing capacities, Volkswagen and Suzuki ideally complement each other. The companies plan a joint approach to the growing worldwide demand for more environmentally friendly vehicles. The management of Volkswagen and Suzuki have concluded that the complementary strengths of each company make for a perfect fit in exploiting their respective advantages as well as rising to the challenge of the global market.

In the automotive industry, where globalization and diversification proceed in parallel, both companies will establish a cooperative relationship while respecting each other’s independence as a stand-alone entity. Both parties are focused on achieving synergies in the areas of rapidly growing emerging markets as well as in the development and manufacturing of innovative and environmentally friendly compact cars.

As demand continues to rise for smaller cars and for powertrains with higher fuel efficiency and lower CO2 output, Volkswagen and Suzuki will offer a compelling solution for customers in emerging markets buying a car for the first time and also for customers in advanced economies seeking to lower their CO2 footprint while still enjoying the freedom of transport offered by an exciting range of cars.”

This partnership comes as the latest development in an automotive industry hit hard by the global economic downturn. Automaker are struggling to make ends meet and to set themselves up for future success. The trend seems to be such partnerships or mergers. With VW buying more and more automakers, earlier this year Chrysler was purchased by Fiat, which sees the U.S. market as a necessary step in becoming a global player. Earlier this week reports also suggest that Peugeot Citroen may form an alliance with Mitsubishi, mimicking a similar French/Japanese deal to the one formed a decade ago by Renault and Nissan.

[Source: Automotive News and VW]

Company representatives on both sides continue to deny the rumors, but talks between Volkswagen and Suzuki are continuing and the most recent report suggests Germany’s largest automaker may buy as much as a 20 percent stake in Suzuki.

A source cited in a Reuters report says a deal is close and could be announced as early as this week. There is even speculation that VW could eventually take a controlling share of the Japanese automaker. Currently a 20 percent share would be worth roughly $2.8 billion.

VW is interested in Suzuki because of its expertise in mini cars as well as its market penetration in India. Suzuki, Japan’s fourth largest automaker, is actually its largest when all 660cc-powered vehicles are included. (Which they aren’t traditionally). Suzuki, while having denied any such sale, is in need of an international partner after its relationship with General Motors fell apart recently. As a partner, GM provided the Japanese automaker with platforms for larger vehicles.

Volkswagen has also expressed a desire to become the world’s largest automaker by 2018 (currently it is ranked 3rd). A majority stake in Suzuki would almost certainly guarantee that. The addition of Suzuki (if VW were able to gain a controlling share), would expand Volkswagen’s brand portfolio to 11 names, includes the likes of Audi, Porsche, Lamborghini and Bentley.

[Source: Automotive News]

Suzuki is hoping to drum up interest in its new Kizashi mid-sized sedan with a quartet of customized versions that will be officially unveiled at the SEMA Show in Las Vegas next week. Suzuki has already released some info on three of the cars built by different tuner shops, while a fourth car, built by the folks at Import Tuner Magazine, will be kept secret until the show.

First up is the Road Race Motorsports Kizashi (pictured above). With a complete aerodynamic kit, a new front grille and vented hood, Road Race gives the mid-sized sedan more track appeal. And helping the car’s performance to live up to its looks are a set of Progress Technology springs and sway bars and Rotora brakes. Performance modifications are kept to a minimum, but Road Race did include a dual exhaust system as well as a new air intake and a reprogrammed ECU.

The lighting experts at Delta Tech also took a stab at the Kizashi, outfitting it with LED and HID lights. The car also has an RK Sport aero kit, a new cold air intake and exhaust system, a well as Koni coilovers.

Looking like an extra from a crash scene in the first Fast & Furious movie (from before or after the crash?) is the Westside Group’s Kizashi Soliel. With “soliel” being the French word for the sun, we do see the relevance, as both hurt your eyes when you stare at them.The car gets a notably extreme aero kit, with a massive rear spoiler and exhaust pipes that are integrated into the bumper. In a nod to Suzuki’s impressive motorcycle building, the Westside guys did use a custom Yoshimura exhaust setup.

In addition to these three Kizashis, Suzuki also shipped one of its new Equator pickups to the folks at ICON Vehicle Dynamics. They slapped on a set of long tube headers and a cat back exhaust for added power from the 4.0-liter V6, while ICON tossed on its own coilover suspension, Total Chaos upper control arms and 2.5-inch shocks for some added off-road capability. The truck was then outfitted with Bushwacker fender flares and a set of Goodyear Wrangler MTR tires on some Trail Ready wheels.

Suzuki won’t have an official presence at this year’s SEMA Show, so the collection of five Suzuki vehicles will be displayed throughout the venue.

See AutoGuide’s live SEMA Coverage here!

GALLERY: Road Race Motorsports Kizashi

GALLERY: Delta Tech Kizashi

GALLERY: Westside Group Kizashi

GALLERY: ICON Equator

More on all of the 2009 SEMA Show Suzukis after the jump:

With Suzuki’s new mid-sized Kizashi sedan about ready to hit dealerships, the Japanese automaker has announced plans to build a V6 powered version of the car. Initially, the Kizashi will only be offered with a 185-hp 2.4-liter four-cylinder, but the 260hp GM-sourced 3.6-liter V6 motor will follow shortly thereafter.

Suzuki has big hopes that the Kizashi will help the brand penetrate the North American market, something it has never effectively been able to do before. As with all other mid-sized sedans, the V6 option isn’t about to be a popular choice amongst consumers, but it should make for some good marketing potential.

The V6 engine model will come exclusively with a six-speed automatic transmission and all-wheel drive. Also expect a more aggressive exterior design as well as more premium interior equipment and 18-inch wheels. Suzuki engineers are currently testing the V6 model, with some impressive four-piston front brake calipers!

See the AutoGuide review of the 2010 Suzuki Kizashi here:

2010 Suzuki Kizashi: First Drive

GALLERY: 2010 Suzuki Kizashi

[Source: Edmunds]