Volkswagen does not need a strategic partner but is receptive to alliances that would open certain markets for Europe's biggest carmaker, Bernd Pischetsrieder, CEO has told a German magazine. "In principle, no," he told Auto Motor und Sport when asked whether VW required an industrial ally. "But when we want to go into particular markets – and I do not include the US here – then we need a partner," he said, citing Malaysia as an example.

Volkswagen and DaimlerChrysler have agreed to work together on a minivan for the US market that Chrysler will build for VW, but they decided in talks on making a sub-compact together based on the VW Polo that the car would cost too much. Pischetsrieder also said that he and Dieter Zetsche, CEO, DaimlerChrysler had agreed to focus on in-house problems before coming up with any more co-operation deals.

"We at Volkswagen have to improve our cost structure more. It could well be that the next generation of Polo could be built and sold in the US at competitive prices," he said. This was a departure from Pischetsrieder's comments last year that he wanted to strike a broad-ranging deal covering several models with DaimlerChrysler. In the interview, he ruled out a partnership with France's PSA for VW's Spanish division Seat. He also said time would tell whether VW would ever build a small roadster.