Just a few days after the country’s independent General Motors importer said it would reduce the number of its dealers selling GM brand cars, Suzuki Motor reportedly will dissolve its sales tie-up in Japan with GM and end its joint development operations in the country.
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Citing a Sunday report in Japan’s largest daily, the Yomiuri, The Associated Press (AP) said Suzuki plans to stop its distribution of the Chevrolet-brand Trailblazer sports utility vehicle and [GM Daewoo-built] Optra wagon in Japan sometime this year.
Suzuki will also stop the manufacture and sales of the Chevrolet Cruze, a SUV [based on the Suzuki Ignis] jointly developed in 2001 and manufactured in Japan, the reports said. The model was also exported for a time under other GM brands, such as Holden.
According to The Associated Press, the newspaper’s report did not identify any sources or offer a reason for the move.
AP said the GM-Suzuki partnership dates back to 1981 but those ties have loosened recently after GM sold 17% of Suzuki in April for about $2 billion, leaving it with a 3% stake.
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By GlobalDataThat followed last year’s sale of GM’s entire 20% stake in Subaru maker Fuji Heavy Industries. GM, which has been struggling to boost profits, also sold the 7.9% stake it held in Japanese truck maker Isuzu Motors, the news agency noted.
AP added that speculation has been growing on whether Suzuki will pick other vehicle making partners in place of GM.
Suzuki and Nissan Motor earlier this month announced an expansion of their business co-operation, which includes mutually supplying vehicles and sharing plants. However, the two companies denied that their partnership will involve holding stakes in each other, The Associated Press said.
Meanwhile, Kyodo News said the Nihon Keizai Shimbun reported on Monday that Suzuki plans to develop petrol-electric hybrid vehicles with General Motors and market them in North America around 2009.
The move is intended to cope with tightening fuel-efficiency standards in North America, the business daily said.
Suzuki and GM are considering equipping sport utility vehicles with engines of around 3000 cc with the jointly developed hybrid system, according to the report.
