A report this morning from Manager Magazine, in Germany, says Volkswagen is investigating the possibility of an alliance with Suzuki in ultra small car development and production.
It has been reported that the German manufacturer could initially take a 10 per cent stake in the Japanese car and motorcycle company.
"You have see it through an Asian perspective, particularly a Japanese one. There are vehicle sizes and classes that cannot be found here (in Europe)," the report said. "You only see them at the Tokyo auto show, but it is undoubtedly an interesting segment, just have a quick look at the developing markets like India. It's correct that there is a gap there that could be closed."
As yet there has been no confirmation from Volkswagen.