Japan's Suzuki Has Big Plans for U.S. Market

NEW YORK April 8, 2004; John Porretto writing for the AP reported that Suzuki Motor Corp., looking to become a bigger player in the Asian assault on the U.S. automotive market, is preparing to introduce two new sport utility vehicles in the next couple of years.

Suzuki last year launched an ambitious plan to triple U.S. sales by 2007. The cornerstone is nine new models, the latest of which was unveiled Thursday at the New York International Auto Show.

The compact Forenza Wagon joins the Verona midsize sedan, Forenza premium compact sedan and Reno five-door crossover vehicle in the beefed-up lineup.

The wagon will compete against models such as the Ford Focus wagon. It is scheduled to go on sale late this year with a sticker price between $13,000 and $16,000.

"Not only does the Forenza Wagon enable Suzuki to compete in the growing premium compact wagon segment, but it allows us to directly leverage the popularity of the fast-selling Forenza sedan," said Koichi Suzuki, president of automotive operations at Suzuki's American arm.

The new introductions to date leave five more models to come by 2007. In an interview with The Associated Press, Koichi Suzuki said the upcoming offerings will include a small and mid-size SUV, which will help the Japanese automaker compete with its larger rivals.

Last year, Suzuki sold 58,438 vehicles in the United States, ranking it ninth and ahead of only American Isuzu Motors Inc. among the major Asian brands, according to Autodata Corp.

Suzuki, which is one-fifth owned by General Motors Corp., hopes to reach 200,000 U.S. sales by 2007. That would place it near Mitsubishi, Mazda and Kia in terms of annual sales, though still nowhere near Asian leaders Toyota, Honda and Nissan.

This year, at least, Suzuki is off to a good start.

Sales through March were up 23.5 percent from a year ago, contributing to a 9.5 percent jump among all Asian brands, Autodata figures show.

Koichi Suzuki said a more varied portfolio has been the key.

"The new models help, but you need a wider range of products," he said. "That helps dealers get customers in their showrooms."

Tom Libby, an industry analyst with the Power Information Network, part of J.D. Power and Associates, said Suzuki's sales target is attainable, but the automaker faces a number of challenges.

Topping the list, Libby said, is a record of poor showings in industry rankings for initial and long-term quality and customer satisfaction.

Last year in J.D. Power's closely watched study of initial quality in 2003 models, Suzuki was the most-improved brand, bettering its score 31 percent. But with an average of 144 problems per 100 vehicles, it still fared far worse than the industry average of 133 problems per 100 vehicles.

Suzuki finished dead last in J.D. Power's 2003 Sales Satisfaction Index Study, which measures customer satisfaction with the purchase or leasing experience.

"They can reach their goals, and they're going in the right direction, but they have a ways to go," Libby said.

Koichi Suzuki acknowledged the quality problems and said the automaker was emphasizing better reliability. The brand also is looking to help dealers improve operations and enhance the buying experience.

Suzuki hopes to increase the number of its U.S. dealers from 500 to 600 in the next year or so. Koichi Suzuki said the goal is to boost the number of stand-alone businesses, as opposed to those that sell more than the Suzuki brand.

"Right now it's 40 percent exclusive dealers and 60 percent otherwise," he said. "I'd like that percentage to flip-flop."

Suzuki Motor Corp., http://www.suzuki.com