The Nikkei reports that Suzuki Motor Corp. is broadening its alliance with Fiat SpA, which will supply Suzuki with 1.6-liter diesel engines.
The Italian automaker will supply an annual supply of 20,000 to 30,000 of the European-built engines. Suzuki plans to use the engines in the SX4, which the two jointly developed, at its assembly plant in Hungary.
Fiat’s new diesel engine complies with the latest environmental regulations and also cuts manufacturing costs. Suzuki aims to make its vehicles more competitive by using the engine, while Fiat hopes to expand production by securing a steady client. Suzuki, which sells the SX4 under its own brand and supplies it to Fiat, also makes a 1.3-liter Fiat diesel engine under a licensing agreement in India.
The two began partnering on vehicle development and engine production technology in 2005.