Will Suzuki Exit the US Market?

The automotive brand graveyard is littered with manylone new model in the Suzuki fleet. But, it also
American names. Packard. Plymouth. DeSoto. Saturn.competes against at least two dozen other midsize
Oldsmobile. Kaiser. AMC. Pontiac. Hudson. Rambler.sedans in the most crowded and competitive segment.
Scores more can be included and more are likely toGood effort, but when buyers are looking at the Ford
follow suit.Fusion, Toyota Camry, Honda Accord, Mercury Milan,
But it isn't just the American brands that have died orChevrolet Malibu, Hyundai Sonata and many other
departed from the US market as several foreignmodels, the Kizashi gets lost in the shuffle.
brands have discovered that they, too, have a difficultThe Equator is a capable compact pickup truck, but it
time making it in the most lucrative, but competitive caris sourced from Nissan. Sold as the Frontier by Nissan,
market in the world. Renault. Yugo. Citroen. Daihatsu.few serious truck buyers are looking at Suzuki in the
Peugeot. Alfa Romeo. Isuzu. Tight competition weedsfirst place, with most preferring to buy directly from
out the weaklings while emboldening the strong playersNissan.
who are eager to step in and step it up.The Grand Vitara also operates at a disadvantage.
Declining SuzukiThe second generation model was introduced for
Suzuki is a Japanese automaker whose fortunes are2006, had a mid-cycle refresh in 2008, but the style of
in decline in the US market. Popular in Japan and inthe crossover is plain and outdated. The Nissan Rogue,
India, the Suzuki brand is more noteworthy for sellingMitsubishi Outlander and Kia Sportage are newer,
motorcycles then they are cars, with its sales in abetter equipped and better sellers. The Ford Escape,
tailspin the past few years. Despite introducing a qualityHonda CR-V and Toyota RAV4 are additional
midsize Kizashi sedan for 2010, Suzuki is finding itcompetitors, capable crossovers at that.
difficult to sell more cars in a month than what GM,The SX4 is the main line of Suzuki vehicles, compact
Toyota, Ford and others sell in a day.cars and crossovers that should sell well. But, even
Yes, as recently as 2007, Suzuki routinely sold morewith all wheel drive available, American car buyers
than 100,000 vehicles annually, but for 2010 thosehave many other small car choices to choose from
numbers may fall by two-thirds. This comes as everyincluding new cars from Honda, Hyundai, Toyota,
other automaker puts the deep recession behind it,Chevrolet, Ford and others. Nothing distinctive about
selling many more cars in 2010 than they did in 2009.the SX4, so why look at Suzuki?
But not Suzuki.Last Hurrah?
Sales LossSuzuki's sales are falling through the floor which
So where does the blame lie for Suzuki's dismalsuggests that the brand isn't long for the US market.
showing? With sales down 60 percent for the firstIndia has emerged as the right market for Suzuki cars
quarter of 2010 those numbers are in starkand with Volkswagen now holding approximately 20
comparison to the 15 percent increase the industry ispercent of Suzuki's shares, the German automaker
seeing for the first quarter. Only Chrysler with salesmay tell its Japanese partner to expend its sources in
down by 10 percent for the year is losing customers,markets where it is succeeding.
but that can be understood considering its bankruptcyYes, Suzuki can still reclaim its mojo in America but at
collapse, restructuring and aged product line.what price? It can cost hundreds of millions of dollars
And that last notation, aged product line, may haveto bring out a new model, but with sales under a few
something to do with why Suzuki has lost its mojo.thousand units per month this Japanese automaker
Aged Modelsmay find joining Daihatsu and Isuzu in making a US exit
The Kizashi is new, attractive and decently priced, theis the best strategy for the company.