History of Suzuki

Company History:

Suzuki Motor Corporation is the fourth largest automaker in Japan (moving average of Toyota Motor Corporation, Nissan Motor Co., Ltd. and Honda Motor Co., Ltd.) to market its vehicles in over 190 countries worldwide. During fiscal 2003 the company sold about 1.8 million cars, with a little less than half of its sales outside Japan. Suzuki is best known in America and Europe as a manufacturer of small, fuel-efficient cars and sport utility vehicles and heavy motorcycles, even if it moved into the area of ​​mid-size car during the 2004-model the introduction of Verona. In its home market in Japan, but the company is the leading producer of "mini-cars" - a classification almost unknown outside Japan.

These small cars - smaller than American subcompact models - are popular because of overcrowding in major Japanese cities, where since the early 1990s a larger car can not be purchased legally, until the owner can prove that he has a car park. In the market for two-wheelers, approximately 80 percent of Suzuki motorcycles or mopeds domestic production, overall, Suzuki is number three on the Japanese motorcycle market, behind Honda and Yamaha Motor Co., Ltd. The company also manufactures of marine outboard engines, generators and water pumps. In addition, through its network of foreign assembly plants Suzuki is able to run on millions of car parts.

Suzuki growth is based on the distinctiveness of national and international strategies. Domestically, the company owes its success to the quality of its engine, which is designed around a wide range of vehicles for niche markets and emerging markets. Internationally, Suzuki has traditionally targeted developing countries with high population growth, including Cambodia, India, China, Hungary, Indonesia and Pakistan. Suzuki's policy in these markets is to find a local partner to sell simple vehicles, more accessible, using the small margins on large volumes. Suzuki is also involved in a long-standing partnership with General Motors Corporation (GM), with Suzuki acting as a key element in GM's network of alliances with Asian automakers, while GM owns 20 percent Suzuki. As part of this alliance, Suzuki took a 15 per cent in the automaker's South Korean GM Daewoo Auto and Technology, the former Daewoo Motor Company.

Early 20th century founders

Suzuki Motor Corporation was founded by Michio Suzuki in 1909 as a manufacturer of weaving machines. From its base in Hamamatsu, the Suzuki Loom Works, as it was then known, supplied the equipment for weaving hundreds of small manufacturers of fabrics and between Tokyo, Yokohama and Nagoya. At that time, the textile production chain, one of the largest industries in Japan. He gave a stable and growing market for the company Suzuki. In 1920 Michio Suzuki took his company public and named the new company Suzuki Loom Manufacturing Company.

Suzuki continued to manufacture frames exclusively for the entire 1920 and until mid-1930. At that time, militarist clique gained control of the government and began a massive mobilization of a program called "quasi-war economy." Businesses around the country were asked to start planning the transition to the production of weapons. Suzuki was an especially attractive supplier because it was equipped with the activity of other factories. In addition, the company was far from the big industrial centers should be the primary targets of the bombings.

In 1937, Suzuki started production of a number of war-related materials that may have included vehicle parts, assemblies, weapon and armor. For his role in the efforts of World War II Japan, Suzuki, like thousands of other companies have been requisitioned for war production and probably did not intend to become a producer of military vehicles. Yet the company continued to manufacture weaving machines for the duration of the war. Fortunately Suzuki factory and the city of Hamamatsu escaped the ravages of American bombing. The company was able to resume production after the war, the economy networks and supply were in ruins.

New Directions After the Second World War

Suzuki returned to the production of textile production equipment shortly after World War II. In Japan, however, was so poor that it was a question of new woven products. As a result, few companies could afford to buy new frames. By the year 1947 the pace of investment has continued to be slow, pushing Suzuki to make great changes in its business operations. In the same year, the company moved into new headquarters and production experience in trust had been during the war, began to plan work vehicles. The outlook was favorable, Japan was a nation of nearly 100 million people, nearly all lacked the basic service delivery.

The heart of the new product line of Suzuki was a small 36cc engine that could be used to power bicycles. The production of the motorcycle, called Power Free, began in 1952, prompting Suzuki to completely abandon the weaving equipment. In connection with the introduction of the new product line, the company changed its name to Suzuki Motor Co., Ltd. in 1954, the same year, she presented her first motorcycle, the Colleda. Later, in 1954, Suzuki graduated from two-wheels for passenger sedan called Suzulight light, powered by a 360cc. In the process, Suzuki has obtained valuable experience in the development of large internal combustion engines, frames of vehicles, gear systems, and steering mechanisms. In 1958, Suzuki has developed a scooter named Suzumoped. The following year he began producing a revolutionary cut, much smaller than conventional delivery trucks while in use and more appropriately tailored to companies in many engines.

Suzuki has been based on the fact that, as the operations of customers has increased, it would be for you. Therefore, it would be useless to the business of losing hard-earned loyalty by failing to offer its customers a diversified product portfolio. After gaining a significant presence in various sectors of the Japanese car market, Suzuki skillfully used these beachheads for future expansion. People pickup in 1959 convinced the company to develop a van, called Take Suzulight FB in 1961.

The only event that has gained greater international recognition of his Suzuki, however, took place the following year, when a motorcycle Suzuki won the 50cc class man of the island race. She was the first of many victories for Suzuki motorcycles, a victory that firmly established the model of society as a world leader hitherto unknown. In 1970, demand for Suzuki motorcycles powerful incentives to develop its first line of four-stroke motorcycles. This leadership position in the market Suzuki preserved.

Exports and Diversification: 1960-'70

Suzuki found it difficult to expand domestic car markets, which were dominated by Toyota, Honda and Nissan. Consequently, it has been unable to develop a range of more sophisticated products. In its quest for growth, Suzuki turned to export markets that were in the same economic conditions in Japan was 10 or 15 years ago. The most promising market was Thailand, a country that historically had close ties with Japan. In 1967, Suzuki has established a factory in Thailand to assemble a wide range of vehicles whose parts were manufactured in Japan. By providing local jobs and to invite the Thai investment in the company, passed import restrictions Suzuki locked manufacturers. Later, Suzuki duplicated export trends formula in Indonesia and the Philippines.

Yet to reach sales targets for domestic vehicles, however, Suzuki began the diversification of the countryside. The company's small engines have been equipped with electric generators to produce a completely new portable power source. In 1965, Suzuki extended outboard boats. The company also dabbled housing, joint initially successful but short-lived.

1973 Organization of the Petroleum Exporting Countries (OPEC) oil embargo changed the automotive market. In the face of skyrocketing fuel prices, consumers have shown interest in more efficient cars. But after Suzuki's small cars and trucks sipped gasoline, were undersized compared to competing models of the three major Japanese. The company's domestic car sales slid further recession in 1974, the oil crisis. In the same year, total sales of mini - Suzuki prime segment car - has dropped by more than 65 percent since 1970.

Suzuki also has a majority control of the car manufacturers, Maruti Udyog Ltd. in India and PT Indomobil Suzuki International in Indonesia. In the U.S. market, Suzuki's strategy is to expand the national plan. Although most leading car manufacturers struggle to the mass market, Suzuki shines in quirky niches between jeep and sport utility vehicles, and between compact and subcompact.

Suzuki has launched an export drive soon after starting full production of motorcycles in Thailand, Indonesia and Taiwan. Furthermore, it has sent the cars to the U.S. for the first time. The product was a bit unusual in the U.S. market, where roads were dominated by large heavy vehicles. Suzuki have been introduced in the United States in small quantities, but we were pleasantly fuel efficient, able to use a third to half of the gasoline as much as some U.S. models. Suzuki, however, entered the U.S. market behind Toyota and Honda, Nissan, Mazda and Subaru and uniform. Also in 1978, fuel prices had fallen, and demand "economy car" Suzuki was evaporation. Oil prices would shoot up again briefly in 1979 after the Iranian revolution, but many of the most promising markets for Suzuki had enacted severe laws that restrict imports from Japan.

1970-80: co-operative relations between the

Returning to the development strategy that began in Thailand in 1967, Suzuki has negotiated a series of face of foreign investment, agreed to locate production facilities in several countries in exchange for access to their markets. In 1982, the company established a production company called PACO Pakistani and a similar operation in India called Maruti Udyog Ltd, which was a joint venture with the Indian government. Suzuki has also established a partnership in Spain with Land Rover, Land Rover known as Santana SA Two years later the creation of new Suzuki marketing activities in New Zealand and France.

United States, apart from Suzuki's largest market of Japan the company signed a series of marketing contracts and production with rival General Motors and Isuzu Motors Ltd. in 1981 (the latter two companies have already affiliated with GM holds a participation by 34 percent Isuzu). As part of the agreement, GM has bought an interest of 3 percent for Suzuki. The companies plan to share production facilities and manage the marketing of each other's products. In 1983, Suzuki started production of its Swift subcompact, which sells GM cars like the Chevy Sprint and later as a Geo Metro. Another result of agreements with GM Suzuki was the creation of a joint venture in Canada, called CAMI Automotive Inc. in 1986. The plant started production in 1989, making Sprint, subways, and Suzuki Sidekicks (also marketed as the Geo Tracker).

While Suzuki-GM joint venture was off to a good start, Suzuki had his own problems much more. In 1985, he began to samurai, were sold the first compact sports-car (SUV) in the U.S. (the term had not yet been invented, however, so the Samurai was called a "multipurpose vehicle"). A year later, the company set up by American Suzuki Motor Corp., a subsidiary of U.S. detention of Brea, California. U.S. sales increased 83 334 Samurai until 1987, but years later, Consumer Reports said that the Samurai was a safe vehicle. In particular, the magazine said that the samurai of high center of gravity could cause it to turn around the conference during the turn, even at low speeds. Suzuki launched its investigation and has taken corrective measures, but the damage had already been made, sales plunged by 31 percent in 1988 and the lowest was only 13 979 units by 1990. Worse, Suzuki, the company across the U.S.

Resigned from the management team - a gesture of atonement, which is interpreted as an abandonment of the company's product and on the American market in general. Samurai has since received a clean bill of National Highway Traffic Safety Administration, which conducted a study of the vehicle and found no more likely to rollover than other light commercial vehicles.

Domestically, Suzuki has developed several new models during the 1980s, including subcompact Cultus Escudo in 1983 and four-wheel drive in 1988. Also in 1988, Suzuki has agreed to manage the sales of Peugeot cars in Japan. The following year, the company deployed Cultus Esteem, who shared the same 1600cc engine as the Escudo. Revenues have also been shoring motorcycle sale, which were recovering in 1990 after a decline that began in 1982.

With the collapse of the Samurai mostly behind, Suzuki began a campaign to restore thin promising vehicle franchises in the United States. High-riding samurai was popular with young adults preferred more rugged jeep like buggy that was impervious to off-road obstacles. Above all, it was fun to drive, and distinctive appearance.

Suzuki has also continued to push the globalization with the opening of the plant in the United Kingdom in 1986, which turned out to be microvans 15 000 per year. The company he co-founded the modern Egyptian society SAE Motors, Suzuki Egypt SAE called, to build compact cars, Super Carry, trucks, vans and cars in line in the country. Licence for production, the Suzuki Swift / Forsa Colmotores SA model through, Columbia. Pakistan Venture also expanded into the car produces less than a new company, Pak Suzuki Motor Company Ltd. In April 1991, formed a joint venture with Suzuki C. Itoh, the beginning of Hungary, the carmaker Autokonzern RT, and the International Finance Corporation. The company called the Magyar Suzuki Corporation, began producing Suzuki Swift in Hungary next year. In addition to putting up capital of $ 230000000 for the new company, Suzuki has flown to each of its workers in Japan, Hungary, the training methods of production.

Meanwhile, in 1990, adopted the Suzuki Motor Company International is the name of Suzuki Motor Corporation. Meanwhile, running a small business in its largest business, cars with engines under 550cc dwarf. This was due to two factors: new laws that have expanded parking restrictions for cars in this class and a worsening recession in Japan. Suzuki loss was partially offset by increased sales of motorcycles, but because the income of automobile production was almost five times greater than sales of motorcycles, the rate of growth of the company overall has slowed considerably .

Suzuki was a promising area of ​​the site, the international umbrella of the venture General Motors' common. Through collaborative agreements, Suzuki was appointed to GM in fact, a small car division, to develop cars for the American company, the Geo nameplate. Elsewhere in the business of selling the Suzuki Samurai in the United States recovered from 20,000 in 1992, but they are never approached the level reached in 1987, and the Samurai in the model ceased production in 1996. Suzuki Sidekick has continued to produce, however, and in 1995 the company launched a mini SUV, the X-90. Engines, suspensions and four-wheel drive options for the same two-door Sidekick, X-90 two-seater in combination with off-road capability and carlike, commuter-friendly.

Exploitation of niche markets in 1990

Globally, Suzuki has continued to look for countries in emerging markets and a large population. Its joint ventures with the governments of Pakistan, Hungary, Egypt, and Columbia had a low risk and cost-effective way to expand. The company of the same successful strategy to improve the first half of 1990, India and China. They have launched a joint venture controlled by the Government of India Maruti Udyog in 1982, Suzuki increased its equity to 50 percent in 1992, and grew the company's ability to 200,000 units in 1994. In 1998, Suzuki-Maruti venture held 80 percent of the Indian automotive market. In China, Suzuki has built the license agreement of the government in 1993 to become the first Japanese company to invest in Chinese car joint.

In the mid-1990s, Suzuki has introduced two successful products in the Japanese market: mini Wagon R car, which started in 1993, and the car Alto, which was introduced a year later with a price tag of $ 5000 who made the cheapest car the country. Also during this time, however, problems with the Suzuki Samurai back to haunt the company. In 1995, the U.S. court awarded $ 90 million to a woman who was paralyzed after a rollover accident Samurai. Suzuki responded by attacking the Consumers Union, publisher of Consumer Reports magazine in 1996. The company said that Consumers Union had deliberately manipulated the test in 1988 to ensure that the samurai failed to maneuver in the short term.

As Suzuki approached the 21 century, it remained largely a niche producer. The company derived about 70 percent of its revenue from car sales, including Cervo, Alto and Swift models, the Transporter van and sport utility vehicles and Samurai Escudo, which was sold in the U.S. as the Sidekick . In 1998, the Company introduced a compact SUV called the Jimny off. Hope to sell vehicles 2000 1300 cc powered by a month in Japan, Suzuki plans to start exporting the car in mid-1998.

Moreover, in late 1990, the Japanese automaker Suzuki has remained mini-car level, a position he held for nearly 25 years. Motorcycles and bikes ranging from 50cc to 1100cc road bikes, represented about 15 percent of business Suzuki. In addition, the outboard contributed 3 percent of sales of Suzuki Motor Corporation.

The company has sold about two million vehicles in 1997, including almost 250 000 miniwagons Wagon R, which made the top-selling car in Japan. Wagon R argues that the position until 2000. Suzuki had hoped to increase the number of vehicles sold per year to 2.5 million by 2000, but the economic problems in Asia between 1997 and 1998, derailed those plans. A severe economic downturn in many markets, in which Suzuki was a major activity, such as Indonesia, Thailand and the Philippines.

In the U.S. market in late 1990, both Sidekick and the X-90 series ended. Sidekick is more effective than saw the crazy X-90, which is never simply captured, but the Grand Vitara (Escudo was sold in Japan) in the compact SUV Suzuki Sidekick as the United States in 1998. At the same time, Suzuki has introduced the reinforced-up version of the Vitara, Grand Vitara (Grand Escudo in Japan), which was the first feature of a small SUV, V-6 engine. To support the new model, Suzuki has added a significant dealer network in the United States.

Increasing ties with GM in the 21st century

Spurred in part in the creation of DaimlerChrysler AG in 1998, which shook the global automotive industry, GM and Suzuki have strengthened their relationship. In 1998, the companies agreed to jointly develop subcompact cars for the European market, and GM has spent about 318 million U.S. dollars to increase its stake in Suzuki to 10 percent. In early 2000, they jointly developed European car, the Suzuki Wagon R + / Opel Agila, began to come off assembly lines in Hungary (via Magyar Suzuki) and Poland (via an Opel plant - Adam Opel AG a subsidiary of GM). The partners have also been active in South America: In April 2000, the production of the Grand Vitara has begun to General Motors de Argentina SA The companies have also worked in Colombia, Ecuador and Venezuela.

In June 2000, Osamu Suzuki, who had served as president of Suzuki Motor since June 1978 became President and CEO of the company. In the long-term leader, who was married to the granddaughter of the founder of the company and took the surname of his wife, was built in Suzuki in a global power, through its constant focus on small cars, cost containment policies, and conservative of tax practices and an aggressive approach to expansion in emerging markets. Similar to that of president and COO, Masao Toda, who had been Vice President is responsible for technology, production and purchasing. Toda remained president until April 2003, when he resigned for health reasons and was replaced by Hiroshi Tsuda, a senior managing director.

Suzuki and GM have strengthened their alliance in September 2000, more emphasis on Suzuki's position as a GM small-car partner. GM then injected Suzuki 600 million in January 2001 to increase its 20 percent. As part of the agreement, GM earned President John F. Smith Jr., a place in the council Suzuki, becoming the first foreigner to hold such a position. Part of the money invested in Suzuki went to start production in Japan of a new car every four-wheel drive compact jointly developed the Chevrolet Cruze. Japanese sales of the Cruze began in October 2001, and then export the vehicle to Australia began in April 2002 when it was sold as the Holden Cruze by GM subsidiary Holden, Ltd.

In front of the motorcycle, for his part, Suzuki and the other "Big Four" Japanese motorcycle manufacturers (the others are Honda, Yamaha, Kawasaki Heavy Industries, Ltd.) was for years against competition from new European insurgents U.S. manufacturers and Chinese companies to make pirated copies of their machines. In response to these threats, Suzuki and Kawasaki announced in August 2001 had reached a cooperation agreement that will allow them to jointly develop new models of motorcycles and consolidate its purchases of parts and production operations to reduce costs. In a related development, May 2002 Suzuki started manufacturing products in the United States for the first time at a plant in Rome, Georgia, led by the U.S. Suzuki manufacturing subsidiary of America Corporation spun out of all terrain vehicles (ATV).

2002 Suzuki also converted two of its major overseas production joint ventures - Maruti Udyog in India and PT Indomobil Suzuki International in Indonesia - in consolidated subsidiaries by acquiring a majority stake in companies. Suzuki now holds 54.2 per cent in Maruti Udyog, and 90 percent of Indomobil Suzuki. In July 2003, the Indian government sold 25 percent of its remaining stakes in Maruti Udyog to the public through an initial public offering (IPO).

As part of GM in the 2002 takeover of the remains of the bankrupt Daewoo Motor in Korea, Suzuki of putting $ 89 million for a 15 percent stake in GM Daewoo Auto & Technology, the South Korean company GM formed as a successor to Daewoo Motor. The first result of this new alliance has been the introduction of two new models from Suzuki for the American market in fall 2003, both of which were rebadged Daewoo models. The Verona, a five-passenger sedan in direct competition against the top-sellers like the Toyota Camry and Honda Accord, marking Suzuki's entry in the medium car market, while the Forenza was marketed as "premium" compact sedan. These vehicles were the first of nine new vehicles, Suzuki plans to introduce the U.S. market during a period of five years, during which the company aimed to triple its U.S. sales of 68,000 sold in 2002 to 200,000 in 2007.

Meanwhile, there were plans underway to start selling GM Daewoo Suzuki models in Japan under the Chevrolet brand in either late 2003 or early 2004.

While Suzuki tried to triple its sales in the United States, its legal battle with the Consumers Union said. In 2002, the ruling that had awarded $ 90 million to a woman paralyzed in a rollover accident Samurai had been canceled. Suzuki suit against Consumers Union was rejected in 2000, but Suzuki has won an appeal to a U.S. Court of Appeals, which in 2002 ordered the case to trial. Consumers Union filed an appeal before the U.S. Supreme Court.

Principal Subsidiaries: Art Bell Co., Ltd., Enshu Seiko Co., Ltd., Hamamatsu Pipe Co., Ltd, SNIC Co., Ltd., S. Tech Co., Ltd., Akita Suzuki Auto Parts Mfg. Co.. Ltd., Suzuki Business Co., Ltd, Hamamatsu Suzuki Auto Parts Mfg. Co., Ltd., Suzuki Marine Co., Ltd., Suzuki Nousei Center Co., Ltd., Suzuki Precision Industries Co., Ltd., Toyama Suzuki Auto Parts Mfg. Co., Ltd., Suzuki transport and packaging Co., Ltd., Suzuki Works Techno Ltd, Suzuki Australia Pty Ltd, Suzuki Austria Automobil Handels GmbH, Suzuki Motor Cambodia Co., Ltd., Suzuki Canada Inc., Suzuki Motor de Colombia SA, Suzuki France SA Suzuki International Europe GmbH (Germany) Magyar Suzuki Corporation (Hungary), Maruti Udyog Ltd. (India, 54.2%), PT Indomobil Suzuki International (Indonesia, 90%), Suzuki Italia SpA (Italy); Myanmar Suzuki Motor Co. , Ltd., Suzuki New Zealand Ltd, Pak Suzuki Motor Co., Ltd. (Pakistan); Suzuki Motorcycles Pakistan Ltd., Suzuki Philippines Inc., Suzuki Motor Poland Ltd.

Suzuki Auto SA, Madrid (Spain), Suzuki Motor España, SA (Spain), Thai Suzuki Motor Co., Ltd. (Thailand), Thai Suzuki Trading Co., Ltd. (Thailand), Suzuki GB PLC (UK) American Suzuki Motor Corporation (USA), Suzuki Manufacturing of America Corporation (USA).

Major competitors: Toyota Motor Corporation, Nissan Motor Co., Ltd., Honda Motor Co., Ltd., Mitsubishi Motors Corporation, Mazda Motor Corporation, Yamaha Motor Co., Ltd., Ford Motor Company, DaimlerChrysler AG, Hyundai Motor Company.