Suzuki has said it remains committed to the US market despite steep declines in sales and was confident a new vehicle launch would help it regain traction there.
“We are here to stay,” Gene Brown, vice president for automotive marketing and public relations for American Suzuki, told AFP when asked about speculation the company may halt US car sales.
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Brown said Suzuki would soon launch a new advertising campaign to show off the new mid-sized Kizashi, which will help elevate the brand’s profile in the US.
Other markets for the new sedan will include Australia and Switzerland.
Suzuki has been battling speculation in the US and Japan about its demise in the US market amid a sharp slump in sales. In January, it sold just 2,040 cars and light trucks in the US, for a market share of 0.3%, AFP noted, citing Autodata.
In 2009, its sales amounted to 38,695, or 0.4% of the market and a drop of 54% year on year, according to Autodata.
Jeff Holland, director of communication for America Suzuki, said of the rumors: “I know there is a lot speculation but it’s not based on facts.”
Speculation intensified after a senior Suzuki executive was quoted in US medai as saying it was “difficult” to retail cars in the United States.
Suggestions that Suzuki was thinking of pulling out of the US also escalated after General Motors bought out Suzuki’s stake in the CAMMI joint venture in Ingersoll, Canada.
Isuzu, another Japanese automaker, announced it was pulling out of the US in January 2008 as sales faltered. There also has been speculation that Mitsubishi might abandon the US in favour of selling cars in Russia and other potentially more lucrative emerging markets.
Brown, however, said Suzuki was working on moving image away from the emphasis on value that has characterised the company’s approach to the market over the past 25 years.
He said Suzuki would emphasise a sportier image that ties back to its other products such as motorcycles, all-terrain vehicles and marine products that already appeal to younger more active buyers.
The sporty look of the Karachi and the compact SX4 sedan as well as the Grand Vitara’s off road appeal fit well into the strategy, he told AFP. The Equator pickup truck also fitted nicely into a strategy that appeals to buyers of other types of Suzuki’s recreational products such as motorcycles and ATVs.
Brown noted Suzuki was a very successful car company in other parts of the world and said it had 40% or more of the market in India and also makes the single best-selling car in Japan.
Suzuki had recently entered into a new alliance with Volkswagen, giving it new access to diesel powertrains, Brown added.
Moreover, while Suzuki was hit by the recession, it was still profitable in 2009 and had now posted profits for over 40 consecutive years.
