According to Automotive News, Fiat CEO Sergio Marchionne and Suzuki Chairman Osamu Suzuki discussed the Japanese firm building the next-generation crossover on behalf of Fiat, once again at its Hungary factory, in a meeting held on May 25.

The Sedici hasn’t been a huge success story – sales peaked at just over 30,000 units in its first year on sale, but have steadily declined to little over half that in the intervening five years, despite a mild mid-life refresh. However, for Fiat, the Sedici was important, as it gave it an instant entry into the soft-roader market, a rising segment ignored by the Italian carmaker and in which it had, by that time, been left trailing its rivals. For Suzuki, which calls its version of the crossover an SX4, it has been a solid seller in Europe, peaking at around 50,000 units before the inevitable decline. Although the car is a co-operation between Fiat and Suzuki, with styling by Giugiaro, the technical aspects of the car are all Suzuki, with Fiat’s sole contribution its MultiJet turbodiesel engine and accompanying manual gearbox.

Observers have been quick to question the likelihood of Fiat and Suzuki continuing their collaboration on a second-generation model, noting Fiat’s newfound stake in off-road specialist manufacturer Jeep, as well as Suzuki’s increasingly close relationship with the Volkswagen Group – the German manufacturer currently owns 19.9 per cent of its partner. These two companies have looked at expanding their collaboration, with VW eyeing expansion in the Indian market and hoping to leverage Suzuki’s expertise in building small cars at low cost. However, it is understood that earlier this year, Suzuki pitched a number of ideas for the SX4 replacement to Volkswagen executives, who were reportedly unimpressed with the proposals. Meanwhile, Jeep’s expertise lies mainly in larger off-roaders, with the SX4/Sedici a full class underneath the smallest current Jeep. These factors may explain why the door is apparently open for Fiat and Suzuki to extend their existing collaboration.

In the meantime, Fiat’s floundering and sharply loss-making Indian operation, Fiat Automobiles India (FIAL) – which is frantically casting around for ways to improve its falling sales – came sharply into international focus last week, following highly critical comments in relation to it from Ratan Tata, the chairman of joint venture partner Tata Motors.

Suzuki builds Fiat Powertrain’s 1.3 Multijet 16V engine under licence in India, and reportedly wants to double the output to 400,000 units per year. FIAL is anxious to build the additional units at its vastly underused state-of-the-art plant in Ranjangaon, although Suzuki has never shown any interest in Fiat being involved in its licenced production operations. AN this week also noted that Magneti Marelli could become involved in the Suzuki supply chain, providing its Dualogic automated transmission as part of a deal. Magneti Marelli already supplies Suzuki with the ECU for the 1.3 Multijet 16V it builds under licence.

At the same time, India’s Financial Express newspaper has said this week that the Sedici, which is available in two- or four-wheel drive models, could come to India to give FIAL a quick-fix addition to a model range that primarily consists of the B-segment Grande Punto hatchback and C-segment Linea sedan. FE quotes “a source privy to the discussions”, who told the newspaper: “Over the past one year Fiat has been considering several options for its passenger car segment. Getting its product portfolio right is critical. Fiat wants to have a model in the SUV space which would be fuel efficient.” FE added that, according to the source, the company would either introduce the Sedici by making appropriate changes, or would look at a “very similar product”.

Fiat has had a complex arrangement with Suzuki over licensing to sell the Sedici, and has only been able to sell it in certain markets. Bringing the Sedici to India could give FIAL a useful entry model into the growing compact SUV segment in the short-term; however, the Sedici is in the ‘soft-roader’ category and may find itself less than capable in India, where more genuine off-road capability is frequently required. It is also now an ageing product, and Fiat could easily fall straight into a trap it has been in many times before, of trying to palm off a product that is not up to requirements on a developing market.