Suzuki bucks the trend
Japanese firm posts profit despite the economic crisisJust to prove it's not all doom and gloom in the car industry the Suzuki Motor Corporation has announced a profit from its 2008 sales. Despite the market downturn around the world the company has announced it made 27.4billion Yen (US$280million) last year.
Two major factors were highlighted for the profit by SMC Corporate Planning Department general manager Seiji Kobayashi. Limited presence in the heavily hit US market and sales growth in India were credited with the strong result.
A focus on small cars, including the introduction of the Splash and Alto models in Europe, also played a major role according to Kobayashi.
In line with the market downturn Suzuki cut its global production level for the first time since 2001. All up the company built 2,493,657 new vehicles which was a 5.4 per cent drop.
The news keeps intact the company's record of turning a profit every year since 1950.
But the continued deflated state of the market around the world will have an impact on 2009 profits. The company is forecasting a net profit of ¥5billion for the 2009 fiscal year.
Locally Suzuki Australia increased sales by 4.4 per cent, achieving a record result for the sixth consecutive year.
In Japan the brand jumped to third in the sales charts with a 32 per cent market share; an increase of 1 per cent from 2007. European sales dropped by 6.9 per cent but Suzuki was pleased with that result given the market was down 17 per cent in the same period.
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