Volkswagen is reportedly looking at purchasing a 10 percent stake in Suzuki as it looks to create a solid partnership with the Japanese automaker. The reason for VW's interest is Suzuki's expertise in mini cars - like the Suzuki Alto, pictured above.
The Alto is currently the best-selling vehicle in India and Volkswagen wants to make sure it has a strong presence in emerging markets.
Suzuki, while a small player in developed markets like North America, is actually Japan's second largest automaker if you count mini-car sales.
The partnership between the two automakers would see the development of a mini car to slot in under the upcoming small cars that will be based on the Volkswagen Up! concept (pictured below). The family of cars based on the Up! will be manufactured in Bratislava, Slovakia, are due out in 2011.
Representatives from both Volkswagen and Suzuki have denied to comment on the matter, but VW's CEO Ferdinand Piech has previously expressed interest in the Suzuki brand.
More: Volkswagen Looking To Buy Stake in Suzuki on AutoGuide.com