Rumours of a possible cooperation between Suzuki and Volkswagen drove the two carmakers’ share prices sharply up on Friday.

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A source ‘familiar with the matter’ had told Reuters on Thursday that Volkswagen is exploring a deal to cooperate with the Japanese automaker to boost its presence in ‘ultra-small’ cars.


Reuters said that cooperation with Suzuki – a ‘kei’ sector mini-car specialist – could yield a new model for VW below the upcoming “New Small Family” range of cars, according to the anonymous source.


Analysts say there could be technology swap gains for both makers.


Reuters noted that Suzuki Chief Executive Osamu Suzuki has repeatedly said he would welcome any calls for cooperation, acknowledging that his company lagged in hybrid and other fuel-saving technologies.

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