Last week there were several Suzuki representatives at the Edmunds.com office, and after talking to them for a couple hours it was apparent the Japanese automaker is on the upswing. Sales are strong and the new Suzuki XL7 and SX4 look to be promising. The company is doing even better in Europe and across the globe. So imagine my surprise...actually my lack of surprise, when I read on Bloomberg that GM is looking to sell its share of Suzuki
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GM has had a financial tie to Suzuki since 1981, and the Japanese car maker has seen its ups and downs in the last 25 years. But now that Suzuki has built up some undeniably positive momentum it would appear the General wants out. Is this the financial equivelant of killing the Fiero, Allante, Impala SS and half a dozen other models as soon as GM gets them right?
By tirthankar_b
on March 7, 2006
10:55 AM
GM needs to focus and cash. Maybe this was a short term decision to achieve it.
By ateixeira
on March 7, 2006
11:04 AM
Makes sense, they can outsource their econoboxes to GM-DAT (formerly Daewoo) anyway. They no longer have a need for Suzuki.
I'd like to see Suzuki go indy, but that may not be practical. Maybe Ghosn will buy them up for Nissan? Eh, they already have the Versa.
I don't know, but I'd like to see them stick around.
By mikesright
on March 7, 2006
01:16 PM
Looks like GM is simplifying its strategy. Suzuki is a company that was getting less and less linked to GM, and GM bought Daewoo, which will accomplish GM's Asia-Pacific and European strategies, as well as any small car strategy. I see all upside with this, since GM gets to cash out of Suzuki at a high time in the stock, and gets to take Suzuki's GM-DAT share and profits, while fishing out more much-needed dough to help the rest of the company. Suzuki gets to separate itself from GM and concentrate on its US strategy alone, and it doesn't have to compete with GM-DAT (company-wise) in this strategy, either.
By kurtamaxxxguy
on March 7, 2006
02:11 PM
If GM truly believes the Chevy Aveo, its current Daewoo offering, is better than what Suzuki offers, then Suzuki products must be awful. The '05 Aveo I rented was a tin can on wheels, cheaply finished, awful mileage for its power (??) output. Sad, but the Aveo's seems right down there with the Ford Aspire and other bottom feeder cars.
Hopefully Suzuki can refine its harsh riding AWD sedans and make them viable alternatives to the overpriced Euro AWD'ers eating up the sport hatch market.
By harrychezt
on March 11, 2006
12:08 AM
http://quote.bloomberg.com/apps/news?pid=10000006&sid=aH2Ti9FcTb1A&refer=home
Seems GM will still have a 3% stake in Suzuki, and Suzuki has soemthing like 11% of GM-DAT. I once read Suzuki has ovcer 11% and Shanghai Motors(GM partner in China) has 1.4%?
So, more than just GM in this deal of GM-DAT.
I could post more links, but this one should be enough.
Take Care/Not Offense
By harrychezt
on March 11, 2006
12:14 AM
forgot to add, Suzuki sells rebadged, and tweaked(?) GM-DAT(Daewoo) cars in USA. Forenza line up and Verona.
Their best sellers, Forenza line up(sedan, wagon, Reno).
Hope this does not slow/hurt Suzuki in the long run. From many other news articles, it shouldn't.
Sounds like if GM is better off next year than this year, they have a 1 year option to buy back the 17% stake(from Suzuki).
If not, the 2 sides will decide what to do about the stake.
I hope GM and Suzuki continue their efforts together for a long time. Suzuki is just now getting to the point of where they could sell over 100,000 units in USA, if things do not fall apart down the road with any more sell offs, etc.
They had their best year in 05, and at the end of Feb, were ahead of Mitsubishi for sales, YTD.
Suzuki is reportedly going to rework the Reno(and sedan?) and make them Sporty, for 07-08.
I hope that Suzuki does not suffer any losses in sales because of this 17% deal.
I want a sporty Reno, if it is as good as they claim(many sites=they) will become.
By harrychezt
on March 11, 2006
12:17 AM
PS: Sorry. Hope my bloomberg post did not violate anything about posting html? Sorry....! :-(