Ken Gratton•10 Nov 2012
NEWS
Suzuki Australia safe
Winding down the automotive business in America will not affect local operationsThe troubled American automotive market has claimed another victim, in the form of American Suzuki.
Earlier this week the importer announced it would cease to market Suzuki's range of cars, to focus on its motorcycle, all-terrain vehicle and marine business instead. The news came as a surprise to most, although sales of Suzuki cars in the US had reportedly fallen from their peak of 101,884 units in 2007, to just 26,618 last year. That was still an improvement on 23,994 from a year earlier.
In contrast, Suzuki Australia sold 23,778 in 2011 and has so far sold 20,102 this year – ahead of the 2011 year-to-date figure. Last month dealers sold 2034 Suzukis in Australia, versus 2043 Suzukis in America. The decline of American Suzuki sales has been a few years in the making, and the Global Financial Crisis obviously bears most of the blame once more.
When contacted by motoring.com.au to determine what the news out of America meant for Suzuki, Andrew Ellis, Suzuki Australia's Communications Manager, couldn't comment on the global ramifications for the company – if any – but did say there would be "no impact for Australia".
And in a statement from Suzuki Australia, MD Masaaki Kato left no suspicion that the company's problems in the American market might trickle down across the Pacific. The statement is brief and to the point:
"Suzuki Australia has assured customers and suppliers the decision to wind up automotive operations in the USA would have no effect in Australia.
"It has taken this decision to realign its business and focus on the long term growth of its motorcycles/ATV and marine divisions in US.
"The strategy for steady continued growth in Australia remains a priority."
Suzuki, like many multinational companies, appears to be turning away from the challenging markets in North America, in favour of emerging markets elsewhere – particularly in the Asia/Pacific region. Suzuki now has plants in China, Indonesia and Thailand, with a third plant under construction in India. So the American market downturn doesn't seem to pose any lasting threat to Suzuki's global growth – not when the company sold over 2.9 million cars and trucks last year.
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Written byKen Gratton
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