Suzuki encounters global crisis

How to solve the problem of continuous decline in sales in China is imminent. At the same time, the issue of single models and years of introduction of new vehicles cannot be ignored. Suzuki is uncertain about China and the United States, the world’s first and second largest auto markets. Recently, Japan Suzuki Corporation issued a statement that Suzuki will withdraw from the US car sales market due to a serious deficit caused by poor management. Suzuki’s US subsidiary “Suzuki Motors” has filed for bankruptcy protection with the U.S. Federal Court. At the same time, Suzuki's other soft underbelly might take a turn for the better in the Chinese market, and Iwasaki Daisuke will go to China as the new chief.

The Suzuki Motor Company, which is wholly-owned by Suzuki for a year-long loss, announced on November 5 that it has filed for bankruptcy protection under Chapter 11 of the Bankruptcy Law and will stop selling new cars in the United States, but will continue to provide motorcycles, off-road vehicles, and marine engines. U.S. Suzuki is the sole distributor of Suzuki in the United States, and Suzuki will officially withdraw from the U.S. market.

"Perennial mismanagement has caused the deficit to exceed the limit that the company can afford. We have been unable to maintain the operation of the US subsidiary." Suzuki Suzuki, president and president of Suzuki Motor Co., Ltd., stated in the Tokyo press conference on November 9th. .

At the same time, another reason that Suzuki Hsu believes that it was causing losses was that the yen’s exchange rate against the U.S. dollar has been rising all the way, eroding US Suzuki’s profits and affecting the sedan’s area. "The company's products are mainly concentrated in the field of cars, but the United States is based on large vehicles."

US Suzuki has been losing money in recent years. Following the loss of $78.9 million in the previous year, as of the end of March this year, Suzuki sold only about 26,000 cars in the United States, again with a net loss of $15.8 million. U.S. Suzuki’s liabilities reached 346 million U.S. dollars and its assets were only 233 million U.S. dollars.

In addition to five years of coaching change in China in addition to the United States for many years of loss, business in China is also a major weakness of Suzuki. In response to the recent Sino-Japanese political disputes that led to a sudden drop in sales in China, on November 15, Suzuki China ushered in the new head, and Iwasaki Daisuke will officially replace Yamamoto Krone as the general manager of Suzuki China. This is Suzuki's fifth coaching change in China since 2007. Suzuki China’s leader is replaced almost every year.

This year was due to the tight relationship between China and Japan. In September, sales of Japanese cars in China fell as a whole, and the downward trend in October did not ease. Among them, in September, Suzuki sold only 15,000 vehicles in China, a decrease of 44.5% year-on-year.

For Iwasaki Daisuke, how to solve the problem of persistently lower sales in China is imminent. At the same time, the problem of single models and years of introduction of new cars cannot be ignored.

It is understood that Iwagani Daisuke came to China in April 2011 to assume the post of Deputy General Manager of Suzuki China. Just over a year's time in China, China will soon face the complex internal environment of the Chinese auto market, it must be the biggest test for him after taking office.