Suzuki Death Watch 8: A Eulogy Due To Incompetence

Mark Stevenson
by Mark Stevenson

When the news came out last night of American Suzuki Motor Corporation (ASMC) filing for Chapter 11 bankruptcy, I was glad to be validated in my suspicions, but sad that a potentially great opportunity had been wasted due to mismanagement and short-sightedness on behalf of its Japanese management.

In other regions, Suzuki does an excellent job catering to the needs of each domestic market. In India, through their long time partnership with Maruti (which has since turned into full ownership of the once state-owned automaker), Suzuki enjoys double digit market share that is the envy of every other automaker in the country. Maruti Suzuki has control over product, they understand the needs of Indians looking for new cars, and they have enough financial input into SMC’s bottom line that the executives in Japan have no choice but to listen.

In North America, things haven’t been as pleasant for the plucky automaker. After dealing with a toxic review from Consumer Reports in the late 80s, saddled with a narrow range of vehicles and General Motors input throughout the 90s, and burdened with selling Korean shitboxes in the 2000s after a joint venture purchase of Daewoo with GM and SAIC, the car maker didn’t have a chance. Or did it?

Suzuki is, unfortunately, broken at the top and ASMC’s Chapter 11 filing is not necessarily the fault of those working in Brea, California. During my conversations with a number of current and former ASMC employees over the last few months, there was definitely a sense that those in charge in Japan either planned for the automotive division to fail, resulting in the Chapter 11 filing, or were complicit in listening to Chairman Osamu Suzuki’s incompetence and didn’t want to piss off the boss. Or both.

During one particular conversation with a former ranking ASMC employee, Osamu was described as “a senile old man that has absolutely no idea what he is doing.” That same former employee also stated the reason for the end of the Volkswagen-Suzuki tie-up wasn’t due to Volkswagen attempting to poach Suzuki for all it was worth or the rank and file engineers not getting along. Instead, Osamu merely “changed his mind”, invented a story to fit his modus operandi, and blasted it to the media as much as he possibly could. No wonder then, when the end of the partnership came to light in the press, Volkswagen’s reply was “we have absolutely no idea what is going on.”

With a company head like Osamu calling the shots, doing what he can to keep Suzuki under his absolute control, it is no wonder ASMC failed in the US. His judgement has been highly impaired for years and there is nobody in a position to kick him off the throne.

And that absolute control is what brings us to the other reason Suzuki has failed to make a massive presence in North America over the last 15 years: who has the power? For every Japanese brand that decides to bring their vehicles to the North American market, their local American headquarters are the nerve center for much of the product planning. Toyota Japan doesn’t plan the next Tundra. Even Nissan’s reincarnation of the Z car, the 350, was mainly worked in the United Stated because that is where they knew they would realize most of their sales. But, ASMC had absolutely no control over what they sold, save for the Equator and some packaging on other vehicles. ASMC didn’t request certain models be built for the American market. ASMC was told what they would sell, whether they liked it or not.

ASMC’s target over the last couple of years has been to make a profit without haven’t to invest in its portfolio in order to pull it off (or at least that is what everyone has been told). There is no such thing as a legitimate business that requires no input. That’s a Ponzi scheme. Unfortunately for employees, dealers, and brand loyalists, the people running this scheme are not the ones who are going to have to pay for it in the end.

Suzuki Canada, with its lackluster range of vehicles, has been in the same boat, selling even less selection than that of its sister to the south. So, even though Suzuki Canada says everything is good in the Great White North, just remember the same people are at the helm in Japan, and there is no geopolitical border for incompetence.


Mark Stevenson
Mark Stevenson

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  • JohnTheDriver JohnTheDriver on Nov 07, 2012

    Why does TTAC keep "reporting" that Suzuki is dead? Their virtually non-existant American distribution company is dead. Suzuki? Doing just fine last I checked.

  • Boho Boho on Nov 07, 2012

    Good morning, Can anybody tell me what will be a reasonable discount to ask for Kizashi due to bankruptcy. Do you think it is possible to get them around 16-18 K. Thanks

  • MaintenanceCosts I wish more vehicles in our market would be at or under 70" wide. Narrowness makes everything easier in the city.
  • El scotto They should be supping with a very, very long spoon.
  • El scotto [list=1][*]Please make an EV that's not butt-ugly. Not Jaguar gorgeous but Buick handsome will do.[/*][*] For all the golf cart dudes: A Tesla S in Plaid mode will be the fastest ride you'll ever take.[/*][*]We have actual EV owners posting on here. Just calmly stated facts and real world experience. This always seems to bring out those who would argue math.[/*][/list=1]For some people an EV will never do, too far out in the country, taking trips where an EV will need recharged, etc. If you own a home and can charge overnight an EV makes perfect sense. You're refueling while you're sleeping.My condo association is allowing owners to install chargers. You have to pay all of the owners of the parking spaces the new electric service will cross. Suggested fee is 100$ and the one getting a charger pays all the legal and filing fees. I held out for a bottle of 30 year old single malt.Perhaps high end apartments will feature reserved parking spaces with chargers in the future. Until then non home owners are relying on public charge and one of my neighbors is in IT and he charges at work. It's call a perk.I don't see company owned delivery vehicles that are EV's. The USPS and the smiley boxes should be the 1st to do this. Nor are any of our mega car dealerships doing this and but of course advertising this fact.I think a great many of the EV haters haven't came to the self-actualization that no one really cares what you drive. I can respect and appreciate what you drive but if I was pushed to answer, no I really don't care what you drive. Before everyone goes into umbrage over my last sentence, I still like cars. Especially yours.I have heated tiles in my bathroom and my kitchen. The two places you're most likely to be barefoot. An EV may fall into to the one less thing to mess with for many people.Macallan for those who were wondering.
  • EBFlex The way things look in the next 5-10 years no. There are no breakthroughs in battery technology coming, the charging infrastructure is essentially nonexistent, and the price of entry is still way too high.As soon as an EV can meet the bar set by ICE in range, refueling times, and price it will take off.
  • Jalop1991 Way to bury the lead. "Toyota to offer two EVs in the states"!
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