Business | Shipping
Suzuki sees no relief from race to survive
Chief executive is open to any possibility, including takeover, to take company to the future.
- Reuters
- Published: 23:56 September 28, 2008
Tokyo: With the Big Three US automakers struggling as consumers shun their gas-guzzling vehicles, Suzuki Motor Corp looks in an enviable position with its line-up of tiny, fuel-saving cars.
That, and its mile-long lead in the nascent Indian market, have catapulted the once stolid car maker to No. 10 in the world measured by number of cars sold in the first half of this year, and lifted its profits steadily for nearly a decade.
But if you ask Osamu Suzuki, the 78-year-old chief executive who has held the post for the last 30 years, it's against all the odds that the company, founded by his wife's grandfather, has made it this far.
"When I reflect on what the industry looked like back in 1978, it was the Golden Age for the Big Three," said Suzuki, who joined the company in 1958.
"And every 10 years or so, there's been a big change - whether it's trade liberalisation or the introduction of emissions standards - and each time, competition got tougher. It still amazes me that we even survived these 50 years."
Palpable
It's tempting to dismiss Suzuki's comments as good-natured if somewhat false modesty but engage him in conversation, and the sense of crisis is palpable.
"If, on top of the volumes, we had our own hybrid, our own fuel-cell technology, our own diesel, CNG and ethanol cars, then yes, we would be a 'top' company," he said this month.
"But we aren't doing any of that. We don't even know how to spell hybrid. Right now, we're just trying to keep up - not even catch up - with the crowd."
Suzuki says it must be open to any future, including the possibility of being taken over, to ensure its survival.
"If it were the best option for Suzuki, I would sell a 51 per cent stake in a heartbeat, to GM or whomever. We simply are in no position to be selective."
It's a strong statement for someone who is widely accepted as the architect of present-day Suzuki Motor.
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