Suzuki closes China office over poor sales

• Source: Gasgoo
• [17:16 December 13 2010]
• Comments

Japanese mini car and motorcycle maker Suzuki Motor Corp., has closed its China office in Shanghai after its plan to create a new joint venture with Changan Auto fell through, the Beijing News reported Monday.

The automaker relocated its 15-year-old office in Beijing to Shanghai in March this year, before which the office near Sanyuanqiao, Beijing had always served as an import hub of the Suzuki's China business. However, owing to its depressing development in recent years, and especially after its intention to cooperate with Changan Auto was strongly rejected, Suzuki China has gradually lost control of the company and finally closed the office.

The revocation of the China office will give full play to the functional roles of Suzuki Motor (China) Investment Co., Ltd. (Suzuki China) and Suzuki's existing joint ventures with Changan Auto and Changhe Auto, a person in charge at Suzuki Motor said.

In addition, Yamamoto Katurou, former General Manager of Toyama, Japan-based sales division of Suzuki Motor Corp., replaced Hiroshi Tarumoto as the new President and General Manager of Manager Suzuki China last week.

The reason for the reshuffle is reportedly the poor sales performance of Suzuki's flagship sedan, the Kizashi, which sold less than 50 units after being launched for five months in the Chinese market, while Hiroshi Tarumoto earlier predicted the middle-class car's annual sales could reach 10,000 units.

During his tenure, Hiroshi Tarumoto said the company plans to sell 500,000 vehicles per year in China, but only 260,000 units were sold from April 2009 to April 2010.