Suzuki’s XL7 Lackluster Sales
American Suzuki sought to calm dealers last week afer Chairman Rick Suzuki’s surprise announcement that he would step down because of faltering sales.
Executives held a telephone conference with dealer council members to address concerns about a memo Rick Suzuki sent to employees on March 28th, 2008.
The memo, which was not sent to dealers, referred to Suzuki’s sliding sales and growing operating losses in the United States. It also said the company will reduce it’s U.S. work force of 674 by 55 employees through a voluntary retirement plan.
Rick Suzuki, 60, also said he would resign soon “to bear responsibility” for the results. He has led American Suzuki Motor Corp. since 1998.
In the memo, Suzuki wrote that in 2003, the company announced a five year plan to reach sales of 200,000 automobiles and 300,000 motorcycles and ATVs.
Poised for Growth: “The five-year plan ended far from its goals, with sales of only 100,000 automobiles and 190,000 motorcycles/ATVs” Rick Suzuki wrote.
Suzuki sold 100,990 vehicles in the United States in 2006, the first time it topped 100,000 here. Last year, Suzuki sold 101,884 vehicles. Sales in the first three months of 2008 were down 4.9 percent to 26,430.
Rick Suzuki said the mid-sized XL7 SUV, “our flagship model in automobiles, was expecting annual sales of 50,000 vehicles but ended with sales of only 22,566 vehicles in 2007.
Source: Automotive News