Suzuki Death Watch 5: How deep would you cut to make a profit?

Posted on 08. Aug, 2012 by in Auto News

The Grim Reaper is not at the door step of the American Suzuki, after all. We have learned, ASMC is healthier, at least financially, than we thought. But, to be profitable in the past year ASMC had completely cut almost any non-essential and some essential functions of their business.

American Suzuki has been very conservative since the launch of its motorcycle line in North America run. With the automotive division only 26,618 units sold last year in the U.S. (which is less than both Porsche and Land Rover) and margins on these vehicles – all outside North America imported, with the exception of the equator – is very thin, it was clear serious injuries as the day had to be done when that was built in the main target in the black.

Public Relations? What is Public Relations?

As we noted in an earlier article mentioned Suzuki Deathwatch, Melissa Fujimoto is currently fielding media inquiries after the departure of PR veteren Jeff Holland. Before her media wrangling duties, Fujimoto spent about 10 years with the actions of an administrative proceeding role in ASMC. In 2011, all operations were carried out activities, so Fujimoto without portfolio. So, instead of the release of the long-term, loyal employees, they made the logical choice and put them on other tasks.

The other tasks while including media relations are primarily as a secretary for ASMC President Seiichi Maruyama.

This may seem odd, but it makes sense when you realize the ASMC current position. There are no plans to release a new product in the next 12-18 months, save for facelifts Grand Vitara and SX4, so it is not. A ton of media inquiries Most current PR duties include reporting monthly sales and the management of the machinery, which can be easily managed by someone whose background is an administrative role in promotions.

ASMC outsourced yet another PR and marketing tasks Paine PR.

Auto Shows? Which car shows?

Before last year ASMC participated in 66 car shows. This number was cut to four. Without a new product in the wings, goes on additional car shows is just an added marketing costs, which is not needed. In a way, it's a smart move to cut costs, but it really needs. The brand in the public eye, which can not live near a Suzuki dealer

The number of dealers will disappear also. Current dealer is arrested development, close to a number of franchises under $ 50,000 buy-outs, their doors.

Everything is cut on the bone

ASMC has lost class talent and has been selling very low volumes of cars with even lower margins. But in 2011, made a profit and sent ASMC bonus checks all his employees.

"People do not understand how economically (Suzuki) can take a car to run companies," said a source who spoke on condition of anonymity: "If say employees from other automakers me how much they spend on things, it blows my mind . "

These gains come with a price. Brand awareness is at a low point. Product development is virtually nonexistent. And over time, leaving more talent for less stressful pastures. While the mood of the moment Suzuki supposedly "normal", its hard to ignore the deafening silence from the lack of new products and a shrinking dealer network.