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Suzuki's US Future -- Good or Dismal
I think everyone here agrees we will continue to see big changes in the automotive world over the next few years. It would seem as if the really small manufacturer's, such as Suzuki, would be packing up it's US operations. But, with Suzuki's sales increasing and the launch of some interesting new vehicles, Suzuki may make a big comeback.
Will Suzuki become a permanent US player or will it be a has been like Fiat or Peugeot? If Suzuki STOPS selling rebadged Daewoos, my bet is that Suzuki will do just fine, firmly positioning itself in front of Mitsubishi, Kia and possibly Hyundai.
Suzuki is where Honda and Toyota where 20 years ago, building high quality, small and affordable cars. With their low price points, unique products and relatively high-quality cars, it's looking good. It seems small and different is quickly becoming what US car buyers are seeking.
The SX4 and new Swift, in my opinion, are raisng the bar for all manufacturers. Thoughts?
Will Suzuki become a permanent US player or will it be a has been like Fiat or Peugeot? If Suzuki STOPS selling rebadged Daewoos, my bet is that Suzuki will do just fine, firmly positioning itself in front of Mitsubishi, Kia and possibly Hyundai.
Suzuki is where Honda and Toyota where 20 years ago, building high quality, small and affordable cars. With their low price points, unique products and relatively high-quality cars, it's looking good. It seems small and different is quickly becoming what US car buyers are seeking.
The SX4 and new Swift, in my opinion, are raisng the bar for all manufacturers. Thoughts?
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I would guess that I'll either get a Suzuki SX4 or a Kia Optima as my next new car. I have scads and scads of respect and admiration for Kia Motors, too, and they offer so much car for the money, too, along with Suzuki. The new Kia Optima offers a midsize, attractive car with great safety equipment standard(sound familiar), 24 mpg city and 34 mpg highway(better than the smaller Suzuki SX4), 5-speed tranny and loads and loads of great equipment standard for only $16,399. I will want to keep a close watch on Scion to see what they will replace the xA with, too. I was close to buying an xA about a year ago and held off.
Our 2001 Kia Sportage 4x4 is running like a champ at 123,949 miles and to run a rig that is paid off completely is a mighty nice lure for us. I will probably hold and keep doing fun research until the Sportsman konks out. Not going to happen for a good while, either. Like I say, I see so much value in these South Korean rigs and their quality is great.
What is exciting about Suzuki is their commitment to new body styling, subbing out SX4 body styling to the Italians. From my research I don't see how one can go wrong buying an SX 4. That 7 year and 100,000 mile Warranty sounds impressive. Here lies the potential problem area. How good will your Suzuki dealer's service department be keeping up their end of the bargain? Suzuki could likely mirror new Kia's, in which right away you have to bring your new Kia in for service to pick up a TSB fix, recall, etc. I really don't mind doing that if I love my new car. I had to bring my '99 Kia Sephia in a few times and I had to stick to it and bring our current Kia, the Sportage 4x4 in a few times . All of the work was done quickly and at no cost to us. It enabled me to walk the lot, gander over the new Kia's and drink marginal coffee, while I discussed cars with the salespeople. Not a bad life at all. It was not a chore to me at all because I love cars. My slight concern is with the Suzuki service department network.
My Kia service departments have been stellar and supportive. No complaints to wager at all against them.
I think that Suzuki's future in America looks bright, though it won't grow by leaps and bounds. It will keep up steady growth, though, IMO. I would like them to bring a new world order Swift over here-I might be interested in a sporty 4-door, 4-cyl., 5-speed Swift if they imported one.
2021 Kia Soul LX 6-speed stick
They also have a 97, Green, Tracker, around 90K miles, and only issue is fading paint on the hood.
Not bad for 10 years of, and lots of road salt in the Midwest, during the winters.
The father-in-law got an SX4 about 8 weeks ago.
He likes it a lot. 27-28 MPG(automatic)...he also lead foots a lot(he said he could probably get 30-31MPG hwy, if he drove all hwy, that is).
The above numbers are for about 25-35% city....rest hwy.
Great Car. Felt like a Toyota on the test drive(s).
Handles like a new knife: Very Sharp!
Thing looks as good on the interior as our tC.
As Iluv knows.... we have a Sonata(second one) since 1999. They are not bad, but they do not seem as durable as Suzuki's!
Cloth on my 04 Sonata GLS V6... wearing thin already :surprise:
"Mouse Fur" cloth.
The interior in that 96 Tracker(I said 97, sorry)...great. Slightly faded, but wearing thin? No.
A 300 dollar paint job would fix it, and that;'s all the issues in 10 years they have with the Tracker.
My main gripe about Suzuki is the GM-DAT cars. I like the idea of the Reno(and 45mph and above, it's not bad, but slow ot 60... like 11 seconds, and low MPG for a FWD car).
Anyhow, I read Suzuki's building a new small car plant, forgot where I read it, but I did.
They do not want any more GM-DAT cars, it sounds like(even though they own 11%+ stake in it).
Out of 3 dealerships, one is with a larger auto group, and should do ok. The other one is borderline tolerable, and the 3rd one sells Suzuki's out of the same building that Motorhomes are sold out of :surprise: :confuse:
Another 2 places closed last year or so(before Suzuki's Revival)...
If they fix the whole line up to be as good as the new SX4...(but for their larger cars) I will seriously consider one.
I had read about a possible new compact, and sporty compact car...for 08(or 08 model?)... but hjard ot find anything on Suzuki, unless they relase the info themselves, and they rarely do that, unless it's 30 days before production, it seems.
Would not mind a 'tC" fighter type of car(they had 155HP in Aerio car, which will be replaced by the SX4 sedan this Spring, 143HP...)....so, maybe add 4 inches of length to the Reno, 155HP, 31-33MPG.....built totally by Suzuki... I'd look, and maybe even buy.
They build solid cars( the Trackers , i do not care for, since they are more like Tractors vs Trackers,lol, in NVH< handling, etc).
They ain't going anywhere. Been here 21+ years.
I've been studying the '07 Kia Optima lately. The body design, especially that huge headlamp assembly, is really starting to grow on me. 24 city and 34 highway if you buy the 4 cyl. 5-speed Optima, which I would. Hey, $16,399 with a $600 destination charge still chings up to under $17,000. As our Sportage 4x4 chugs happily along it's going to be a gas researching what we'll get next!
2021 Kia Soul LX 6-speed stick
The weird thing is it was not anything like the prior generation Kia Optima I rented earlier this year which I thought was a lively little car.
2001 BMW 330ci/E46, 2008 BMW 335i conv/E93
Given Daewoo no longer exists, Suzuki has no choice but to stop selling re-badged Daewoos.
On the other hand, Suzuki owns a 25% interest in a new company that acquired former Daewoo factories in Korea now known as GM DAT.
Suzuki is at capacity in its Japanese factories. Its US factory is under capacity. However, given the cost of US labor, it would seem to make more sense for Suzuki to expand capacity in the US but stop using capacity at less expensive Korean facilities Suzuki owns.
Which leads to my question: How do you expect Suzuki to expand market share profitably as you appear not to want Suzuki to make cars in Korea? (which can be the only logical basis for the Daewoo reference)
My comment was not intended to tell Suzuki how to increase its production capacity, I was just saying that IF Suzuki sold more of its Suzuki-developed cars in the US, it is my opinion, that the brand might prove more popular.
To me, it would seem a little pompous for me or anyone to tell Suzuki how they should be gearing their production capacity for more output.
Suzuki and GM through its Australian Holden division are now working on new designs to be made in the factory. My understanding is despite GM's recent divestment of its Suzuki stock, Suzuki continues to want to use the Daewoo facilities as the cost of expanding in Japan is prohibitive.
GM DAT products should be competitive if the designs are. One of the reasons Daewoo went under was the enormous sums it spent on its facilities. One of the new GM DAT factory (believe it is in Southern Korea - but I forgot the name of the city) is arguably the most modern and technically advanced auto factory out there.
Korean labor has a tendency to strike at unfortunate moments. But they are well trained.
I imagine once the Suzuki/Holden designs start cranking out, you will have a real competitor to Hyundai. No reason then the Suzuki brand in the US wouldn't start to expand.
This year Suzuki has overtaken Honda to become Japan's #3 car manufacturer in sales there. Nobody in the U.S. even realizes this.
As for rebadging generic GM Daewoo cars, I hope that ends pretty quickly. They are sold worldwide as Chevys, Buicks, Holdens and yes, Daewoos. Only in the U.S. can you buy a Daewoo designed Suzuki. I think the Suzuki designed products around the world are far superior but American Suzuki will probably need to rely on these Daewoos for at least another generation to keep sales here growing.
Well, anyways, my wishlist for 2007 would be:
-BRING OVER THE SWIFT and SWIFT SPORT!!@$#
(http://www.suzuki.co.jp/dom4/lineup/swiftsport/)
-Bring us the SX4 2.0S (http://www.suzuki.co.jp/dom4/lineup/sx4/exterior/gallery/pg_f7.jpg)
-sell more cars in the U.S. than Mitsubishi
-break 125,000 sales
Thank you Santa. Go Suzuki!
100,990 units sold, a record year for Suzuki, and the first for over 100,000 units sold in USA. 2006 sales were up 23% over 2005.
Kia sold over 294,000 units in 06(see same website or wardsauto.com, or any other that gives 06 figures), and Hyundai around 455,000 or so units for 06, so in order for Suzuki to beat either, they had better get going!
I read on intellichoice.com
http://www.intellichoice.com/future/future/year/2007
that Suzuki is going to have an addition to the reno line-up, a Sporty Reno, and a tweaking of Forenza, and on other sites( edmunds Inside Line, for one) the Aerio is gone, and the SX4 sedan is going to replace it.
If you look @ intellichoice, and check out 08, says an all new sport sedan from Suzuki will be as good as their motorcycles(something like this). All New. Good.
Heard Suzuki is building a plant in the same country they build the SX4 with Fiat(Hungary? Too lazy to do a search... already did enough for one month, lol).
And the new plant would produce New(worldwide) Cars for Suzuki. I hope so.
The Reno is a nice idea, and style, But, it takes nearly 11 seconds to hit 60 with 126HP? The Rio with 110HP(sedan) can hit it in 10 seconds, give or take.
If Suzuki tweaks their cars like they did my father - in- law's SX4(has had it nearly 3 months, 7, 500 miles already),
I Will Buy A Reno sport hatch from them! Not Kidding.
Big Difference between the SX4 and any other Suzuki out there.
Try to Visit a dealership, and test drive say forenza, then the sx4, Big Difference in quality, NVH, 0-60, handling, Everything.
Inlaws had 2 Suzuki's (well, "Chevy" Trackers)... and as I stated before, the one lasted 213,000+ miles. The other is still in their driveway. A 1997 model, 80-90K miles, only issue is fading hood paint.
They are as reliable as any Honda or Toyota( engine-wise/body-wise), BUT,. NVH, 0-60, MPG, the rest is behind almost everyone else!
The Reno, for example, is rated @ 29-31MPG, with a 126HP I-4. Our Scion tC, with 160HP, gets 32-34MPG with automatic(despite the EPA label saying 29MPG).
Even if all it got was 29MPG, a 160HP engine, similarly size cars,etc, but 34 More HP than Reno? That's not a good thing.
take care/not offense.
2) more advertising
3) more vehicles at the "smaller" autoshows.
4) maybe raise awareness by putting out more info on these "upcoming" cars for 07 and 08(about their "sporty" sedan and hatch/reno ...these are making a come back, small and sporty = sales these days). Get people interested!
The little sedan appears to have many early fans, and it does look very handsome. I will take a good look at it myself. Yeah, Suzuki sells more cars than Honda in their home Japanese market.
For my next car the two current finalists are the Kia Optima and the Suzuki SX4. Our '01 Kia Sportage 4x4 is running like a top at 124,894 miles and we will no doubt want to run it till it's wheels fall off and enjoy no car payments for a tad, so a purchase will no doubt be a ways off still. Lots of fun research time still available to me!
Suzuki has popped squarely into my picture though with this hot new SX4 and the soon-to-be-here SX4 sedan. Build quality on the SX4 crossover appears solid as the other Japanese imports so far.
2021 Kia Soul LX 6-speed stick
Look at all the improvements they made on the Grand Vitara, and yet sales don't show it and cash incentives are up.
The SX4 is a cute little puppy, but you almost never see them on the roads. I was intrigued to note that I saw 3 or 4 on a recent trip to L.A., more than I have ever seen here in the Bay Area. I have test driven and think it is very much worth the $16-17K sticker price - it shows the Scion line a thing or two for instance. But unless you specifically want AWD, it has its downsides too.
They do very much need a larger sedan designed and built by Suzuki Japan for the NA market.
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
http://www.geocities.com/auto_world_blog/
Is the minivan becoming a victim of sexism? (Straightline)
Suzuki Built,Not GM-DAT.
Should be out next year?
I do not see anything about any future Reno/Forenza(their largest sellers) for future vehicles, Anywhere.
Seems the SX4 CUV and SX4 sedan may replace them(sort of?).
The sx4 sedan,out by September(?) is the size(or larger) than the current Forenza, and FWD.
The sx4 sounds good, but why the decontenting of the interior? I have seen this on subcompacts, like Rio, etc...(nor armrest/center console), etc... but, not in compacts!
Why, Suzuki, why?
It's annoying that this rather simple, failry inexpensive item is missing in the in-laws SX4 CUV and I am sure w/o one in the SX4 sedan, it'll be equally aggravating( and iirc, only driver can order a fold down arm rest, which is not quite as good, either, and passenger on their own...what is this, 1990?).
I might give Suzuki a try next year, when the Verona(Suzuki's version) comes out.
I dunno.
I like the SX4 CUV, and the car is supposedly faster.
But this decontenting the interior, to add abs, etc.... and keep prices "low", no thanks.
They need a real sporty car, like our tC( 0-60 around 8 seconds, 32-34MPG, 3 door hatch...they sold nearly 80,000 tC's last year..design 'em good, they'll sell).
This 143HP, maybe 9-10 seconds to 60, and maybe 29-31MPG?
No.
They lost sales vs april 06, but are slightly ahead(for now) for the year. Their cars geting 29-31MPG, or Toyota cars getting 38-40MPG( Yaris,similarly priced cars)...
with 3-3.50 a gallon, people get the most MPG for their bucks, not "mediocre" mpg small cars.
Fix MPG, re-content cars,more dealerships and advertising.
Some cars in their line-up, like the Mazda3, or tC,and so on.
Heard they may have a hybrid by 2010. By 2010,almost everyone else selling vehicles in USA will have clean diesels, getting 40-50 MPG, w/o the worry of battery packs needing replaced.(I also checked out Toyota sales... Yaris and Prius gaiined, rest of car line up was down, for April, but the sales gains for a few vehicles lifted Toyota up in April 07 vs 06. MPG = sales).
The Swift is coming, but only the 5 door( see the Suzuki news on this link, other threads on here). The sx4 sedan is being advertised as sharing many componenets to the Swift,but larger.
take care/not offense
-Rocky
Remember, Suzuki kei-cars are the top-selling microcars in Japan and have been for years upon years. Suzuki is not gonna be leaving the automotive scene any time soon. I still like their SX4 AWD-crossover/wagon a lot but I need more information or at least a close-up on the lot look at the new Suzuki SX4 sedan. The new one with the factory bodykit looks pretty cool and Suzuki offers a 7-year, 100,000 mile Warranty as well. And they do small cars well...I kind of like their XL-7 SUV and Grand Vitara SUV but would really not seriously look to buy one of them. The SX4 I like...I like it a lot. :shades:
Even so, in the U.S. they could use an I.V. stick. :sick:
2021 Kia Soul LX 6-speed stick
They will always be the brand at the huge combo dealer with its cars hidden in the back of the lot because nobody has heard of Suzukis, and where the dealer has to mark every car up 3 grand just to make any money, something which he knows he can do because he knows his nearest competition is 50-100 miles away or more, even in large urban areas.
I don't look for Suzuki to make this huge resurgence it is looking for in its recent business announcements.
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
Suzuki is really pumping a lot of money into advertising. My co-worker, who had never thought about Suzuki and cars, told me that she saw like 5 or 6 SX4 commercials during last weekends sporting events.
I can easily see Suzuki raise its sales by 10% a year for a couple of years, just like it did in the U.S. from 2005 to 2006.
Even Subaru, the king of having dealer network problems, does better than that on the west coast (north of LA, anyway).
And geez, that IS the west coast, the stronghold of Japanese car companies.
Thing about Suzuki is, with such a low dealer density, the dealers know that for the most part they have a functional monopoly - not many buyers will drive the extra 40 miles to get the better deal. I'm not saying they all do that, but the ones near me do, and why wouldn't they?
And if the dealers have lots of other vehicles from multiple makes on the lot, it makes the salespeople less likely to know the selling points of Suzukis (the salesman I spoke to this year couldn't even FIND the SX4 I drove, I had to lead him to it, and he still didn't recognize the model even when we walked right up to it), and provides lots of competing models for the buyer to eyeball that are right there where the Suzukis are parked.
I almost bought an SX4 this year - pretty nice vehicle for the money, drives well. But the dealer thought he could jack me over, so I ended up in a Matrix which doesn't have the AWD, but is better in most other ways for the same money (and I felt like I didn't get gouged on purchase price). I did try the internet thing because unlike many folks, I WOULD drive the extra 40 miles to get a really good deal. But all I heard back were whiny stories about how it was a new model and nobody was selling for less than sticker, and would I like to buy a leftover '06 Aerio instead? THAT they could discount....
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
I never said Suzuki was huge. They're only just now building up on car sales. Subaru is larger in the U.S. (and especially in the NW). Just because the west coast is strong for Japanese cars, doesn't mean that automatically every Japanese car company should have huge sales and huge dealer networks. That's a meaningless generalization. Every car company is different.
Suzuki sold 100,000 vehicles in the U.S. in 2006, up 23% from 2005 (compared to 2006 sales of 200,000 for Subaru, 455,500 for Hyundai, and 1,300,000 for Honda). So 4 dealers is decent for the area (Subaru has 6, Honda has 9).
Again, you don't seem to have read the pricing forums. Most people are buying SX4's at or below invoice. I did the internet thing and got 1 quote at $1,000 over MSRP, but also 3 at or below invoice. I just bought one yesterday for $300 under invoice. And I didn't drive 100's of miles back and forth wheeling and dealing.
And as for not driving for "the better deal" anyone who doesn't do that for any car isn't likely to get a good deal.
It sounds like you're just sour that you couldn't get a good deal on an SX4.
http://www.autonews.com/apps/pbcs.dll/article?AID=/20080331/ANA05/848205136/1078- /emailblast02&refsect=emailblast02
Rick Suzuki, the chairman of American Suzuki (ASMC), is resigning due to the company's dismal showing in America.
" ASMC is forced to re-evaluate its present work force, payroll, fringe benefits and health insurance coverage to implement substantial cost-cutting," Suzuki wrote. " Please understand that with the dismal results of the year 2007, ASMC is in no position to provide any bonus, let alone pay raise this year."
Sales have been totally stagnant at around 100K cars per year, and 190K motorcycle/ATV sales last year. Their 5-year goal in 2003 was 200K cars and 300K motorcycle/ATVs.
Add to this the recession, the age of the Korean models (Forenza, Reno, Verona, which one don't they sell as of 2008?), the total failure of the new Grand Vitara to take off, the high gas prices suppressing XL7 sales, and what do you have? A very uncertain future in North America, to say the least.
Actually, given the lousy dealer network and the lack of exceptional product, I am surprised they have managed to hold sales even flat. I know that is in part due to fleet sales of the Korean models. I wonder if they will hang on as long as Isuzu did. I expect the motorcycle business is safe. It is the cars I wonder about.
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
My thinking this time a year ago was that the corner of the market for the Japanese brands was too crowded even with Isuzu essentially dead. At the time I thought it was probably a race between Suzuki and Mitsubishi as to who would fall first in North America, and honestly my bet then was on Mitsubishi, because its decline had been so much more dramatic.
But now it looks like the resurgence of Mitsubishi is assured in NA for the near-term, and that only leaves.....Suzuki. I don't think Subaru will disappear any time soon, although in the longer term I wonder.
As for the Swift, they have "expected" to bring it to the U.S. before...I will wait for that one until I actually see it. The new global Swift looks like a great car, and has always been a really good subcompact in the past. I hope they DO succeed in bringing it here.
Suzuki's own cars are generally well-designed and well-built. There was a sharp divide in the CR-type ratings as well as customer satisfaction surveys between the GM-DAT models rebadged for Suzuki, which all fared poorly, and the models like Aerio, Grand Vitara, and SX4 that Suzuki had designed and built itself. It is a very good thing that the Korean models are going away, IMO, even if that leaves a hole where a midsize sedan should go in North America.
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
2021 Kia Soul LX 6-speed stick
With gas at $3.50 a gallon any company that can deliver a 30+ mpg car for a good price will have a bright future.
2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible
Right there, in a single line, you have exactly encapsulated Suzuki's problem: they aren't the biggest brand, or the best-built brand, or the cheapest brand, or the brand with the longest warranty, or the Japanese fave brand. Every corner of the market is already covered by someone else, and that leaves Suzuki.....not standing out. I'm not sure what they can do to combat that problem.
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
But they do have a very long warranty...7-years/100,000 miles is very good when compared to just about anyone. While they're not the least expensive, they offer something different and more interesting than the typical appliance that is sold at their price level. Not being the biggest brand is a PLUS...for $15k, you won't find your neighbor driving the same car as you.
But others have the 100K warranty as well: GM, Chrysler, and Mitsubishi IIRC? Mitsu has a longer B2B warranty as well, beating pretty much everyone bumper to bumper.
Not being the biggest brand can be a plus, until you look around and suddenly discover you are one of the smallest and your sales are shrrrriiiiiinking...
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
Not being the biggest brand can be a plus, until you look around and suddenly discover you are one of the smallest and your sales are shrrrriiiiiinking...
That would be true if we were talking about Isuzu (gone next year) or Mitsubishi (sales in the US down 14% in 2008), but not for Suzuki (sales down 5% in a market that's down 8%).
As for shrinking sales at Suzuki, I agree that their sales are far from falling off a cliff, but you have to keep in mind that they are exporting most of their cars to the States from Asia (the only one I can't remember is the XL7 - it has GM running gear, is it built in a GM plant here in NA?). As such, there has to be a minimum volume to make the business case for keeping operations going over here, and I think their big sales plan developed a few years ago that went FLOP loudly with the recent resignation of the NA CEO was in fact created to deal with this problem. They need to double their sales in the U.S. for the business model of doing so to make sense.
The same is not true of motorcycles and ATVs however, from what I can tell. That is actually a much more profitable business for Suzuki in America than cars and SUVs are.
The Equator could add substantially to sales at minimal cost to Suzuki, beginning this summer. I am sure that is Suzuki's hope. Me, I remember when Mitsu rebadged a Dodge Dakota and sold 3000 of them all year (the year being 2007 - what the heck was that Mitsu pick-up even called? I have already forgotten). That model is now being discontinued. I think it likely that sales of the Equator (what a name!) will follow a similar path.
After all, why not just buy the Frontier? there are more dealers in the Nissan network by far, better selection of options and configurations when buying new, better availability of parts and know-how for servicing (especially a few years on), and no advantage to the Suzuki label beyond the 100K warranty.
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
The Raider was a Dakota on steroids. In their commercial it was supposed to scare the other trucks. I guess the Raider ended up going home with it's tail behind it.
Mitsubishi has much to make up for and not much coming in the way of new product. The updated Galant is just "updated." The Lancer is their "hit" and it's not making up for the losses in the rest of the lineup. Add all of that to the cost of Mitsubishi's self-owned and vastly under-utilized US plant...and Mitsubishi's in bigger trouble than Suzuki.
If they make this "miraculous turnaround," more power to them. I've just heard all that before.
But I think the American plant makes Galants and Eclipses, where sales are DOWN substantially, so that's a prob for Mitsu.
By contrast, Suzuki doesn't manufacture ANY of its models locally, so the yen-dollar exchange rate just keeps dragging profits down. And with 100K sales per year, it is inevitable that dealers will begin to stray from the pack in ones and twos, except for the megastores with 20 brands on sale. And megastores aren't very good for Suzuki's interests, as little effort is made to promote Suzuki specifically at those types of places...
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
Suzuki has been pushing a national TV and print ad campaign, which seems to be much more prominent than the subtle ads being run by Mitsubishi. And Suzuki does indeed produce models locally...the XL7 is produced in a plant co-owned by Suzuki and GM just across the border in Ingersoll, Ontario.
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
They're going to have to start selling a lot more SX4's, XL-7's, Grand Vitara's, etc. to keep afloat. 2008 may be very telling on their NA future.
2021 Kia Soul LX 6-speed stick
I think each of these companies needs to set realistic sale goals and adjust their business practices accordingly. it's a tough market.
I think each of these companies needs to set realistic sale goals and adjust their business practices accordingly. it's a tough market.
It's absolutely a tough market, but when was the American market easy? Maybe 1947?
Suzuki's AWD sets it apart from the other $15,000 compacts...and when the market is that competitive, it takes something distinctive. It's the same thing that set Subaru apart when they were floundering in 1995.
And where Suzuki is just about flat in a down market, Mitsubishi is most definitely down. Outlander sales are down from last year (about 44%), Lancer and Galant sales are up (13% and 24%, respectively), but they still don't amount to much (13,754 between them in the first quarter). The sales difference between Mitsubishi and Suzuki is marginal (240 units between them in March, 652 in the quarter), but Mitsubishi is supporting a vastly underused UAW-led factory. Mitsubishi has been on the ropes for years while Suzuki is at or near record levels in the US.
They absolutely need to set realistic goals. Suzuki's dream of 200,000 in the US was pie-in-the-sky thinking and unless they come up with the next big thing, they should be content with 100-120k. Mitsubishi, even with the few EVOs they'll sell, should also be happy with 120k in the US...so long as they ditch the plant. If Mitsubishi wants to keep its US manufacturing base, it should think about subleting to someone who needs the space, because Mitsubishi products won't need it anytime soon.
As for growing sales in a down market, Suzuki wanted to grow them five years ago, in what has turned out to be the largest market, and fastest-growing, in HISTORY in the U.S. 2005 still stands as the highest sales year ever, I believe. They couldn't increase sales when EVERYBODY was selling everything they could turn out. It is HIGHLY unlikely they will be able to grow them now. I am waiting to see how the CEO resignation will shake out in terms of scaring the dealer body.
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
Similar story behind the two plants. Mitsubishi launched their plant and brought Chrysler in as a partner, but Mitsubishi bought Chrysler's share out years ago. Mitsubishi continued to make vehicles for Chrysler until the last of the coupes went out the door. But Mitsubishi's occupation of the plant was in trouble before then when their own market share went into freefall and Galant sales fell about 70% (and Endeavor sales never hit volumes that it was planned to hit).
Subaru's partner sold out when Isuzu decided to stop selling their own vehicles. Subaru found Toyota to take over part of the plant, but atleast Subaru was using their half of the plant...the same could not be said for Mitsubishi.
Suzuki's problem was that they are a small car company and BIG cars (and trucks) were selling in the US. If there's going to be any time for Suzuki to gain market share in the US, it's now when gas prices are high and demand for smaller cars is growing. But they need to get the proper vehicles (like the Swift) onto the market NOW! Waiting a year or two gives everyone else time to get quality small cars on the market. Strike while the fire is hot!
It would be cool to have something for sale here that was really different from all the schlock we have now though.
And I am always for any and all possible JDM models making their way across the big water... :-)
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
http://www.autoobserver.com/2008/04/speeding-and-li.html#more
Hyundai and Kia are close behind, so I guess they are doing really badly this year too.
Interestingly, I noticed recently that they are now running TV ads for the SX4 hatch, which come on the heels of those ads that were running showing both the hatch and the sedan. I guess they figure they had better get their name out there a bit more.
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)