Projects with VW to start rolling in Jan: Suzuki

8220;We generally understand what we want from each other,through information exchange up to now,8221; CEO Suzuki said at the launch of the new Alto microcar in Tokyo.

8220;Actual,detailed execution 8212; with our people going there and their people coming here 8212; will be after January,8221; he said.

Suzuki said the new partners have agreed they want to develop a competitive,small car,seen as key to expanding sales in developing countries.

Responding to a report in Indian newspaper Economic Times quoting a top Maruti Suzuki India official as saying that Volkswagen and Suzuki may develop a small car that would cost 4,300-5,400,Suzuki said: 8220;Suzuki Motor has authority over this,not Indian subsidiary Maruti.8221;

Suzuki Motor has long been the top maker of 660cc minivehicles,a segment that exists only in Japan and gets preferential tax treatment. While the engine size is not optimum to get the best fuel economy,decades of experience in microcars has helped Suzuki build up expertise in developing cheap but reliable cars.

The first Alto model,launched in 1979,was CEO Suzuki8217;s first major project at the helm. Costing just 470,000 yen 5,250,it became an instant hit,and cumulative sales in its 30th year hit 10 million units this year.

8220;The Alto,for me,was the trigger for Suzuki to enter the auto-making industry,8221; Suzuki said. 8220;I think we will add another 10 million units at a faster pace.8221;

Suzuki aims to sell an average 7,000 units a month of the seventh-generation Alto in Japan. The model starts at 677,250 yen 7,561 for the commercial van,and at 732,900 yen 8,183 for the passenger car model.

Suzuki said,however,that he did not expect the 660cc segment to grow in Japan next year,estimating the market in 2009 to end at around 1.68 million units,down about 10 per cent from last year.