Thread Starter
#1
Nissan Motor, Japan s thirdlargest automaker, said it may need to find a new partner to manufacture its European small cars after Volkswagen bought a stake in Suzuki Motor, which supplies Nissan s Pixo model. We don t know yet whether that strategy is still good with Suzuki joining Volkswagen, Nissan executive vice-president Colin Dodge said in an interview. A lot of people believe not, and we re thinking about it.
Halting the Pixo would leave Nissan without a small, low-cost European model to compete with Fiat SpA s Panda and Volkswagen s Lupo in one of the few vehicle categories that is still growing. It would create a new hole in Nissan s product planning after Chrysler backed out of a deal last year to supply cars and pickups. That commitment was canceled after Fiat bought a controlling stake in the US carmaker.
A spokesman for Suzuki, Takuma Mizuyoshi, couldn t immediately be reached for comment. Volkswagen, Europe s largest carmaker, had no comment on whether the German manufacturer would try to cancel the Suzuki-Nissan partnership, according to spokesman Michael Brendel. Yokohama-based Nissan hopes the supply deal will continue and doesn t have the volume or vehicle designs to make European city cars profitably itself, Dodge said.
The Pixo, a version of Suzuki s Indian-made Alto model, plugged a gap at the bottom of Nissan s European lineup when it was introduced in April as government incentives accelerated a shift in demand toward smaller, fuel efficient cars.
Nissan is unlikely to abandon the city-car category if the Suzuki supply ends, Dodge said in the Feb. 10 interview. Affordable entry-level cars are going to become more relevant, and no big car company can afford to ignore that. Wolfsburg, Germany-based Volkswagen plans to make use of Suzuki s small-car designs for its own future models and has drawn up 35 cooperative projects, Germany s Manager magazine reported Jan. 21.
Suzuki currently supplies Pixos at a rate of about 30,000 a year, Nissan spokesman Gilles Gautherot said. That s less than half the annual consignment Nissan had said it hoped to negotiate. France s Renault owns 44% of Nissan. Nissan s partnership with Chrysler was dissolved in August.
Halting the Pixo would leave Nissan without a small, low-cost European model to compete with Fiat SpA s Panda and Volkswagen s Lupo in one of the few vehicle categories that is still growing. It would create a new hole in Nissan s product planning after Chrysler backed out of a deal last year to supply cars and pickups. That commitment was canceled after Fiat bought a controlling stake in the US carmaker.
A spokesman for Suzuki, Takuma Mizuyoshi, couldn t immediately be reached for comment. Volkswagen, Europe s largest carmaker, had no comment on whether the German manufacturer would try to cancel the Suzuki-Nissan partnership, according to spokesman Michael Brendel. Yokohama-based Nissan hopes the supply deal will continue and doesn t have the volume or vehicle designs to make European city cars profitably itself, Dodge said.
The Pixo, a version of Suzuki s Indian-made Alto model, plugged a gap at the bottom of Nissan s European lineup when it was introduced in April as government incentives accelerated a shift in demand toward smaller, fuel efficient cars.
Nissan is unlikely to abandon the city-car category if the Suzuki supply ends, Dodge said in the Feb. 10 interview. Affordable entry-level cars are going to become more relevant, and no big car company can afford to ignore that. Wolfsburg, Germany-based Volkswagen plans to make use of Suzuki s small-car designs for its own future models and has drawn up 35 cooperative projects, Germany s Manager magazine reported Jan. 21.
Suzuki currently supplies Pixos at a rate of about 30,000 a year, Nissan spokesman Gilles Gautherot said. That s less than half the annual consignment Nissan had said it hoped to negotiate. France s Renault owns 44% of Nissan. Nissan s partnership with Chrysler was dissolved in August.
Source : ET