Filed under: Hirings/Firings/Layoffs, Suzuki, Earnings/Financials
Suzuki boss steps down due to poor sales in U.S.
Suzuki's sales in the United States have been at historically high levels the last two years. Both 2006 and 2007 saw American Suzuki Motor Corporation move more than 100,000 units – a big feat for a little brand in the U.S during these tough economic times. Despite that seemingly good news, Rick Suzuki, president of ASMC, has called the performance dismal and is stepping down in an act of seppuku. The record performance is looked upon so unfavorably because it falls far short of goals laid out by Suzuki in 2003 as part of a five-year plan to eventually sell 200,000 automobiles. Financially, ASMC is taking losses, so Suzuki has put into place a buyout plan that is expected to aid in trimming 55 jobs out of its 674-strong U.S. workforce. Employees who do stay on can expect no bonus or raise this year. Perhaps Suzuki was caught up in irrational exuberance back in 2003 and set some overly-ambitious targets. Its automotive product line has a certain appeal, and the unveiling of the Kizashi 3 at the New York Auto Show has us excited for what's soon to come from Suzuki. Here's hoping the brand doesn't go the way of Isuzu in the U.S.
[Source: Automotive News, sub. req'd]
Reader Comments (Page 1 of 1)
RG 8:33AM (4/01/2008)
I dont know how they planned on reaching 200,000 units in sales when they only have, what, three vehicles that fly completely under the radar.
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Gstill 9:13AM (4/01/2008)
Agreed. And the new Equator pickup isn't going to grab them any new customers anyways. Consumers are just starting to put brands like Kia on their shopping list, Suzuki just hasn't gotten to that point yet.
Gooch 8:51AM (4/01/2008)
Suzuki has to acquire the same kind of cachet it has in motorcycles to succeed in automobiles. There is only one way to do that -- performance on the the track gets you credibility on the street. It needs a halo sports machine that makes people think they have the performance of the GSX-R in an automobile.
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tio 8:54AM (4/01/2008)
Those forecast numbers were dependant on good sales of the Daewoo products. The midsize Verona was a disaster.Had it been reliable and had either a more fuel efficient engine or more power to equal the fuel usage it might have caught on. It wasn't a bad looking car. Word spread like a wild fire that the car had a lot of problems. Electronic as well as machanical problems. The Forenza also has problems but they seem to be mostly small annoyances like check engine light etc... That he has stepped down shows what a different culture they have.
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NOreasonY 9:27AM (4/01/2008)
i agree with Gooch, they make such great sport bikes and motorcycles and they need to really bring that spirit in with sporty , fun to drive vehicles...take on a Mazda kinda feel, if you will. That concept looks great and they needs something like this to get the publics attention.
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Gregg 9:31AM (4/01/2008)
Their current lineup is such a mixed bag. The Verona is thankfully gone, but the Forenza and Reno are Daewoo, and have neither quality nor economy to speak of.
The XL7 is a GM product with unique styling, though the look does not say Suzuki, whatever that is. The Grand Vitara is an OK small ute, and better off-road than say, a CRV, but because most people now prefer crossovers and don't give a fig about off-roading, it is a niche vehicle.
The SX4 is a terrific little conveyance, but because of its size, is unfairly compared with the Fit or Versa. Almost all reviews remark on the relatively poor gas mileage compared to other subcompacts. Except that it has AWD and stability control, which none of the others do. And it gets better MPG than any other AWD vehicle. Compare numbers to the AWD Impreza and up, and the mileage starts to look really good. But people who buy it often expect the city number to be around 30 MPG, due to its size, and are disappointed. So it isn't selling like hotcakes any more.
All in all, Suzuki is making great sales numbers with the motley crew of largely unknown models it markets here.
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PJ 9:32AM (4/01/2008)
Those sales targets were pretty optomistic. It should have been pretty obvious, back in 2003, that the Daewoo-sourced products wouldn't have legs; they were only class-average when introduced. The Forenza/Reno now have the dubious distinction of being the least-powerful (127 hp) and least efficient (19/28 MPG) cars in their class.
IMHO, Suzuki really missed the boat not offering their current-gen Swift at introduction in 2005. It would have blown away the Aveo, Accent, and Rio at the time and served a fast-growing niche. Now the segment's too crowded to make much of a splash.
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Jeff the Baptist 9:43AM (4/01/2008)
Bring over the Swift. Bring over a decent compact pickup or something that could do that job. There you go, two niche markets you could build upon.
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Rene Curry 9:59AM (4/01/2008)
Yeah, I see the "Swift" all the time in China.
It's already right hand drive. It's looks awesome with a few extra mods! It would steal Honda Fit & Nissan Tiada (I forgot the US name) sales real fast.
Eric77TA 10:20AM (4/01/2008)
Isn't the SX4 at least partially based on the Swift? I think that they actually share some platform components.
Nonetheless, the regular "Swift" would be welcome - especially if we can get the GTi.
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tio 11:04AM (4/01/2008)
I agree the swift should have been in the line up, but you have to remember, When it was being developed Suzuki asked it's US dealer network if they wanted it. They said no. They wanted a large SUV. It's hard to get dealers to sell small cars even when that is what the market wants. Dealers want $5000 profit margins. $500 they don't want to bother with. When i went to look at the SX4 I was pushed to look at the XL7.
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Philip 11:48AM (4/01/2008)
Suzuki are off track.
The Forenza is sad, Who would want one?
The Equinoix/XL7 is awful, Ugly, not as good as the SUV it replaced, Neither would get me into the showroom.
The Kizashi and Equator will help, but they need more unique cars, Suzuki produce some amazing little cars but again America misses out, Bring us the SWIFT SPORT, and Wagon R.
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stang_fan 11:59AM (4/01/2008)
Wow, imagine how many unemployed CEO types the U.S. auto industry would have if the folks at the top of GM and Ford behaved like this guy? No excuses, real or fictional, just "I didn't make my numbers, therefore I must resign (in shame)".
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Disgruntled Goat 12:44PM (4/01/2008)
When you're getting multi-million dollar bonuses while laying off workers, closing factories and losing money why would you step down? If someone was willing to pay me for essentially doing nothing I wouldn't turn it away.
Peter Jubb 12:23PM (4/01/2008)
Two words for you Suzuki North America, Swift Sport
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Disgruntled Goat 12:31PM (4/01/2008)
Rick Suzuki? Sounds like an alias to me. Seriously tho, is this guy any relation or did he land this job on merit and it's just a coincidence he shares his last name with the name of the company?
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Richard S. 1:27PM (4/01/2008)
Suzuki should leverage its sports bike heritage into making an affordable entry-level sports car akin to the old Toyotal Celica & Mitsu Eclipse. FWD, Turbo I-4, and costing about $19K, with decent interior that does not look like an Avis rental. Then go up a little higher in the food chain with a RWD, 2.5L I-6 turbo 2+2 coupe. Price it at $25K, well loaded, and keep the weight down (don't want another 350Z).
Use the cache from the above sports coupes to bring a sporty-entry level sedan to compete with Corolla and Civic. Then they can out-Civic the Civic.
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judd 1:43PM (4/01/2008)
I agree. The Swift Sport would have been "the car". Someone dropped the ball there. I would have opted for one if it was available. I've been waiting for 2 years.
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John Metcalf 7:20PM (4/01/2008)
Suzuki has nothing special in the US market. The SX4 is an attractive package on it's face, but in the current climate, something that small and economically priced should get better mileage.
Bring a 30+ mpg swift over and you'll see some sales. People are finally looking for good mileage.
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Threader 8:04PM (4/01/2008)
No wonder. Suzuki like every other manufacturer models just get bigger, heavier and bloated.
What ever happened to the 1600 lb Swift with the 3 cylinder 1L engine that got 45mpg hwy?
Didn't need 300 pounds of Batteries to get that kinda of mpg.
now I looked at their line up and the best any of the models do is 30 mpg hwy.
Wow 50% less economy. That's the complete opposite of Toyota and Honda which get better MPG every year.
btw those MPG figures taken staight out of the new adjusted figures at the http://www.fueleconomy.gov
Before the new MPG calcs were in place that wonderful little Suzuki 3 cyl 1 L engine was rated at over 50mpg.
Shame on Suzuki with the price of gas today not selling more economical fuel sippers!
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