Fiat is discussing a deal with Suzuki to supply diesel car engines from 2003, Asia-Online reported.

The deal is likely to be seen as yet another useful advantage of Fiat's recent alliance with General Motors.

The website said Suzuki would use the engines for car models made in Hungary, India and other factories outside Japan.

If the deal proceeds, Fiat diesels could also find their way into the Opel/Vauxhall Agila version of Suzuki's Wagon R 'mini-minivan' which is made in Poland.

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