SUZUKI, ISUZU WEIGH IMPACT OF OPEL SALE TO MAGNA

With Canadian autoparts supplier Magna International Inc. becoming a major shareholder in Opel, Suzuki Motor Corp. (TSE:7269) and Isuzu Motors Ltd. (TSE:7202) are anxious about the fate of their partnerships with the German carmaker.

Suzuki has been supplying an annual 30,000 units or so of the Splash small car made in Hungary since last year under an OEM agreement with Opel. Had Italy's Fiat SpA become Opel's parent company, Fiat's strength in small vehicles would have made it unnecessary for Opel to turn to Suzuki.

So having the Magna-led alliance purchase Opel is a better scenario for Suzuki. Still, "it's up to the new Opel" to decide whether to maintain a partnership with the Japanese carmaker, a senior Suzuki official says.

Isuzu supplies all diesel engines produced at a Polish joint venture with General Motors Co. to Opel. The Magna alliance is seen as not so strong in development of low-pollution diesel engines, meaning that Opel would still need to source such engines from the Isuzu-GM alliance.

(Nikkei) rw

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