Suzuki to end hybrid development with GM

TOKYO, Jan 16, 2010; Yoshifumi Takemoto writing for Reuters reported that Suzuki Motor Corp said it would end joint development projects with General Motors [GM.UL] for hybrid and fuel-cell technologies as part of an operational review following its alliance with Volkswagen AG (VOWG.DE).

Suzuki and Volkswagen last month announced a comprehensive tie-up, and Europe's top automaker on Friday became Suzuki's biggest shareholder with a 19.9 percent stake. Cross-shareholding between the two companies is part of the pact.

Suzuki had relied on General Motors, once its top shareholder, for help in developing hybrid and fuel-cell technologies. The Japanese carmaker told a gathering on Friday that those projects with GM would end in February.

"Suzuki is in a comprehensive alliance with Volkswagen. In every field including hybrid, diesel and electric cars, we will carry out joint development with them, or we will learn from them," Osamu Suzuki, chairman and chief executive, said at the briefing in Hamamatsu, central Japan.

He also said Suzuki plans to procure diesel engines from Volkswagen and would review its ties with PSA Peugeot Citroen (PEUP.PA) and Renault SA (RENA.PA), which currently supply diesel engines to Suzuki.

Editing for Reuters by Bill Tarrant