Is Suzuki Going The Be The Next Brand To Pull Out Of The US Market?

Is Suzuki Going The Be The Next Brand To Pull Out Of The US Market?
About 50 Suzuki dealers have accepted buyout offers from the company in the past five months as part of a plan to cut the brand's worst-performing stores.

Struggling American Suzuki Motor Corp. launched the voluntary program in March to encourage low-volume dealerships to close. The brand now has about 300 dealerships, says Gene Brown, the marketing vice president. That's down from 354 in March.

Suzuki says it aimed to trim the number of retail outlets to give survivors a better shot at profits through increased per-store sales. U.S. sales topped 100,000 in 2006 and 2007 but fell to 38,689 in 2009 and are off 48 percent so far this year.





 

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Larrybel2000Larrybel2000 - 8/16/2010 10:05:19 AM
+3 Boost
Boring vehicle line up. Give us a rally SX4 and another niche vehicle like the Samurai. Give us awesome off road packages on your trucks. Restyle your cars like Kia and Hyundai did. And then advertise. Boring Boring Boring.

Larry B.
Key West.


veyron1001veyron1001 - 8/16/2010 11:14:18 AM
+2 Boost
Better yet close down the car division and expand the motorcycle division.


0to600to60 - 8/16/2010 11:27:16 AM
+5 Boost
Saw a Kizashi* for the first time... Does that car go up against the Accord/Sonata??? If so I wouldnt pic it over a civic. Just aweful. Looks like an elantra competitor.


0to600to60 - 8/16/2010 11:27:30 AM
+2 Boost
oh and I would pick the elantra!


rxh8me9000rxh8me9000 - 8/16/2010 8:14:22 PM
-1 Boost
I swear I keep forgetting this brand still exist until I read about them somewhere. God knows how they are still around yet companies that actually make at least one decent car like Saturn (Sky) and Pontiac (G8) are down under.I have a Suzuki dealership around my way and its always dead in their. Stick to Bikes!


Larrybel2000Larrybel2000 - 8/16/2010 8:21:01 PM
+3 Boost
Actually, they are the number one selling brand in Japan and have profited every year for like 50 something years. Believe it or look it up.

Larry B.
Key West.


fit4lifefit4life - 8/16/2010 8:55:47 PM
+1 Boost
There have been alot of auto manufacturors closing slow moving dealerships in the U.S. not just Suzuki.

It's rather silly to title an article the way they have this one, based on a manufactors moves to increase dealer profitability. That's the type of over-dramatic interpretation I would expect from a tabloid rather than a serious car forum.

If anything this is a consolidation effort on Suzuki's end to bring greater profitability to the existing dealers that already sell in greater numbers.

Keep in mind when it comes to current sales numbers, Suzuki is still going up against numbers which included vehicles which it no loger sells such as Forenza & Reno (both were Daewoo re-badges) and the XL7 (a GM re-badge). The Forenza all by itself represented the best seller in Suzuki's previous line-up, so the discontinuation of those cars skewes the actual sales numbers.

Suzuki was well aware of what discontinuing those models would do to sales numbers and yet they decided to do it anyways in order to make-way for genuine Suzuki models (not re-badges) over which Suzuki would have direct control (which it never had with the re-badges Daewoo's or the GM XL7).
So this was all part of the greater plan, to reshape Suzuki's operations and presense in North America and bring forth a much stronger line-up that simply wasn't possible with the previous offerings (the re-badges).

But think about it this way - Suzuki survived in the North American market for several decades (previous to its current generation of cars) with almost no advertising and a much smaller dealer network than it has right now (even counting the ones that it's closing), with the sales of just 3 vehicles - Swift, Esteem, Sidekick, with a total volume of just 25,000 units per year, and yet Suzuki is still here.

How have they been able to survive? Because Suzuki is also known industry wide as being extremely cost-efficient when it comes to its operations. Not just in North America, but worldwide.

I also read on a Japanese blog that another reason that Suzuki is buying-out the slowest dealers in the U.S. is because of plans to expand Suzuki's North American dealer network through joint operations with Volkswagen (which is Suzuki's new global partner) in which around 200 new Suzuki dealerships would be opened around the country, side by side with exisiting VW dealers that have the capacity for it.

Indeed, Volkswagen itself has the exact same plans with Suzuki for India, in which Volkswagen is going to use Suzuki's extensive and market dominant dealer network in that country, to expand VW's presense over there.

In addition to all of that, it appears that North America will be getting the all new Suzuki Swift sometime towards the end of 2011 which will give Suzuki of North America a subcompact with good MPG's and a car that has been a worldwide sales success for the company.

As far as SX4 and Kizashi go, Suzuki has just begun its most extensive advertising campaign i


fit4lifefit4life - 8/16/2010 9:00:27 PM
+1 Boost
As far as SX4 and Kizashi go, Suzuki has just begun its most extensive advertising campaign in the U.S. that it has ever done. Suzuki has noted that in just the first few weeks of the new advertising campaign, traffic to its main U.S. website is up by triple digits!

SX4 was just named one of the "2010 Top 10 Coolest New Cars Under $18,000 today" by Kelley Blue Book.

Kizashi aslo has some new developments. Two new trim levels are arriving in the next month or two at U.S. dealerships will be the Sport SLS and the Sport GTS. Both versions will have a lower stance, enhanced suspension response, and sportier trim. It will have the same drivetrain as the regular versions however Suzuki plans to ship more of the Sport versions with 6-spd manual transmitions. Additionaly, Suzuki is already in talks with VW about a possible VR6 equipped Kizashi and/or a turbo-4 version.

As for the Volkswagen side, that company is impressed enough with the SX4 platform and chassis design that the next Volkswagen model the Rocktan will use the Suzuki SX4 platform. It will come equipped with a VW drivetrain and possibly a diesel version (which would allow Suzuki to also use the diesel engine in its U.S. version SX4) in addition to a petrol version.

Audi too will be briging forth its next Audi model based on the Suzuki SX4 platform. That one will be the Audi Q1.

This is actually big news for Suzuki from both a prestige standpoint but also from an economics and production numbers standpoint.
For actual owners of the Suzuki SX4, having both VW and Audi selling their own versions of a Suzuki also opens up the possibility of greater after-market availability, ie body kits, enhancements, etc.

So based on all of that, it's just a bit silly to suggest or hint that they are going to pull out of the U.S. when they have survived here off of much less than they have now, and considering all of the plans they have instore for the North American market in conjunction with their new partners Volkswagen.

Check out some recent comparisons of of Kizashi to other well established brands -

Go to YouTube, type in "Auto124 MidSize Sedan Comparo".

Also in YouTube type in "Hyundai i45 & Suzuki Kizashi Comparison Car Review"

Another one in YouTube - "$25,000 Family Sedan Shootout"

See for yourself. They can't ALL be wrong. ;)


Larrybel2000Larrybel2000 - 8/16/2010 11:51:24 PM
+1 Boost
Thank you for the info. A little long winded but worth reading. Thanks again fit4life.

Larry B.
Key West.


OccarnutOccarnut - 8/17/2010 6:55:00 AM
-1 Boost
The sad fact is that Suzuki will not survive in the U.S. and will leave. Suzuki in the U.S. has squandered opportunity after opportunity to be successful...Hyundai and Kia took the market that Suzuki "slept" through. The Japanese executives charged with running Suzuki in the U.S. do not understand (or even like) cars, do not understand (or like) Americans and the U.S., can barely speak english, and do not have the slightest idea of how to succeed here..other than "spin" and cut costs. Sad but true because there are a lot of smart, hard working Americans at Suzuki here in the U.S. but the "village idiots" (Koichi Suzuki, Rick Suzuki) sent over here to run Suzuki cannot do the job..and they are jeopardizing the livelihood of people. Think I am wrong? Just watch...


tangotango - 8/17/2010 12:58:18 AM
0 Boost
I actually went to a Suzuki dealership in FL a few months ago and had a look at the Kizashi. It is an excellently executed vehicle. I must admit. It has a very European feel to it. It's not a competitor for the Camry et al (waaaay too small) but it would do quite well against something like the Elantra or the Fusion.


0to600to60 - 8/17/2010 7:47:00 AM
0 Boost
isnt the fusion a camry competitor? Focus maybe? I would pick the focus.


CaraficionadoCaraficionado - 8/17/2010 1:28:48 PM
0 Boost
and why would they name that car the Kizashi?


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