Fiat to supply more diesel engines to Suzuki image

Fiat announced it will supply 100,000 more small diesel engines to Suzuki Motor’s Indian subsidiary, in addition to those already licensed.

The Italian carmaker supplemented the number of engines it delivers to Suzuki as the Indian car market is seeing strong demand. Under the amended deal, Fiat will supply up to 100,000 more diesel engines a year for a three-year period to Maruti Suzuki, a joint venture that is 54.2 percent owned by the Japanese carmaker. The 75-hp 1.3-liter MultiJet engine will be used in Suzuki models from India produced by the company’s local affiliate Maruti Suzuki India Ltd.

The unit is the same engine that Fiat supplies to General Motors in Europe, and the same engine that powers the Fiat 500, Punto and Panda. In September 2011, Volkswagen Group, which owns 19.9 percent of Suzuki, accused the Japanese automaker of breaching their partnership agreement by buying diesel engines from Fiat.

Suzuki contested the claim and in November launched an arbitration proceeding against VW to force the German giant to give up its stake. VW says it has no plans to relinquish its shares in Suzuki.