Volkswagen is examining a cooperation with Japan's Suzuki Motor the area of ultra small cars, a source familiar with the matter said on Thursday, confirming a report in manager magazin.

An employee is reflected in a Suzuki Motor's 

car at a Suzuki Motor showroom in Tokyo 
June 2, 2009. Reuters/Toru Hanai

You have see it through an Asian perspective, particularly a Japanese one. There are vehicle sizes and classes that cannot be found here, the person said.

You only see them at the Tokyo motor show but it is undoubtedly an interesting segment, just have a quick look at the developing markets like India. It's correct that there is a gap there that could be closed.

Earlier manager magazine, citing company sources, said that Volkswagen was looking to reinforce a cooperation by taking a stake in Suzuki of 10 percent initially.

A spokesman for Volkswagen declined to comment.