New Delhi, May 15 :    New Delhi, May 15:  Suzuki Motor Corporation (SMC) today formally signed a deal with the government preparatory to acquiring majority control of Maruti Udyog and indicated that it would turn the Indian carmaker into a global sourcing hub for select models. Suzuki, obviosuly wants to take advantage of the low labour costs in India to turn out certain cars for the global marketplace. SMC director Shinzo Nakanishi told newspersons after the deal was signed that Suzuki's strategy for Maruti would involve 'sourcing some of SMC's models globally, assisting MUL to access new export markets, promoting it and its products in the global market, and aggressively strengthening MUL's manufacturing and technical capabilities so as to make MUL's products internationally competitive in terms of quality and cost.' Nakanishi, Pradeep Kumar, joint secretary (heavy industry) and Jagdish Khattar, MUL's managing director, signed the new memorandum of understanding (MoU) which will govern the manner in which Maruti is run in the future. Till now, the government had four nominees on the Maruti board and had the right to appoint the managing director and chairman by rotation. Its rights will now be curtailed to appointing just two nominees to the Maruti board. The two partners will meet again on May 30 to discuss the nitty gritty of the management structure in the joint venture-like re-electing Jagadish Khattar as managing director and filling up important posts like director (finance). Officials at the heavy industries ministry said, 'This is the best possible deal that could have been signed between the two parties. Even though government will exit the joint venture in a couple of years, the ministry will continue to maintain a keen interest in the progress and growth of MUL as a dominant player in the auto sector. Following the deal, it depends largely on Maruti to establish India as a hub for small cars and lead the way for modernisation of the auto industry.' Maruti will immediately get a cash injection of Rs 400 crore through the rights issue. While sources refused to spell out the company's plans, analysts feel Maruti will restructure some of its long-term outstanding debt. Maruti has Rs 440 crore of long-term debt from Indian bankers which it took in 2000-01 for manufacturing the third line of production. At the time, it was taken for a period of five years taking the repayment time to 2005-06. 'The company will not repay all its debts as soon as it gets the fund, but will probably pay up a fraction of the loan. It will use the rest to introduce new vehicles. The company has clawed back from the red; so, FIs will have faith in it and re-negotiating debt will not be a problem,' analysts said.