Suzuki outlines its five-year plan – July 24, 2006
July 24, 2006
Filed under Features
Japan’s Suzuki Motor Corp. hopes to build 4.4 million motorcycles and 2.7 million automobiles annually in the next five years, operating under what company officials call the “Suzuki Medium-Term Five-Year Plan,” a roadmap for business to be followed until March 2010.
Suzuki production facilities in 22 countries serve customers in 187 countries. Suzuki’s ATV and motorcycle production for the year ended March 31, 2005, numbered 2,970,000 units, up from 2,268,000 in 2004. Production of ATVs and motorcycles outside of Japan in 2005 increased 139 percent to 2,473,000 units.
Using Yen 1 trillion ($8.7 billion) in capital investment during the next five years, the company’s business objectives are to raise consolidated sales to more than Yen 3 trillion ($26.2 billion) by 2010 — Yen 900 billion in domestically produced and sold products; Yen 900 billion in domestically produced, overseas sold product; and Yen 1.2 trillion in overseas produced and sold products.
The basic policy of Suzuki’s five-year plan is to promote research and development and capital investment, establish a revenue base to support those investments, and develop human resources capable of leading the group to continued growth. In Japan, it calls for strengthened mini, small and subcompact vehicle sales ability and proactive introduction of new products. In overseas markets, the plan provides for an increase in the capacity of plants that are reaching production capacity, capital investment to improve quality, and the introduction of products tailor-made to suit individual foreign markets.