Maruti makes A-Star/Alto-based Pixo for Nissan Europe on an OEM basis

Maruti makes A-Star/Alto-based Pixo for Nissan Europe on an OEM basis

 

Maruti Suzuki may make cars for Volkswagen under contract, three Indian newspapers said on Thursday, citing Maruti's managing director.

"The talks with Volkswagen are going on at a global level and there is still no clear picture. There is a possibility of an OEM (original equipment manufacturing) supply contract with them, like we have with Nissan," Shinzo Nakanishi was quoted as saying by the Hindu Business Line newspaper, Reuters reported.

But, there was no possibility of platform sharing as the German company's production and product development costs were huge, which could affect Maruti's business viability, Nakanishi, who is also Maruti's chief executive, told the Economic Times.

Maruti Suzuki has a three-year contract with Nissan to make and export the Pixo hatchback to Europe. The contract, for a minimum of 35,000 units a year is set to expire in 2011, the Hindu Business Line report said.

Volkswagen bought a near 20% stake in Maruti parent Suzuki Motor in January.

In the US, Chrysler makes a minivan for VW's US unit.