Report: Suzuki looks to Fiat for 30,000 1.6-liter diesel engines a year

Suzuki has extended its alliance with Fiat SpA with the announcement that it will turn to the Italian automaker to supply it with 1.6-liter diesel engines. According to the Nikkei (sub. req.), Fiat will reportedly provide Suzuki with up to 30,000 1.6-liter oil-burning engines a year. Suzuki intends to use the downsized mill to power its SX4, a vehicle developed by both Fiat and Suzuki.

Since the 1.6-liter diesel engine already complies with current environmental regulations, Suzuki's decision will eliminate costs of developing its own clean-burning mill and, thankfully, will allow Suzuki to price the diesel-engined SX4 more competitively. For Fiat, the deal means that the Italian automaker has secured a long-term client. The two automakers kicked off their vehicle and engine development partnership back in 2005.

Photos copyright ©2010 Drew Phillips / AOL

[Source: Nikkei – sub. req. via Green Car Congress]