Suzuki 2002 Annual Report Download - page 13

Topics for fiscal year 2001: Environment Planning Department, an organization dedicated to promoting environmental issues on a company-wide
scale, was established on April 2001. At the same time, we set up an Environmental Committee and newly enacted the Suzuki Global
Environment Charter. In our product design and development, we reached an agreement with General Motors Corporation on October 2001 for
mutual cooperation in the field of fuel cell technology. In our production and purchasing activities, on August 2001, we achieved reduction to
zero level of buried waste products at all of our plants inside Japan.
Strategic Alliance with General Motors Corporation
CHEVROLET CRUZE
On September 14, 2000, Suzuki and General Motors Corporation (GM)
announced the further strengthening of our strategic alliance. This
enhancement of our alliance was symbolized by increasing GM's equity
participation in Suzuki from 10% to 20.1% in January 2001. Furthermore, in
the general shareholders' meeting held in June 2001, GM's Chairman, John
F. Smith, Jr., was elected as a member of the board of directors of Suzuki.
Suzuki and GM believe that through an alliance strategy each company will
gain the benefits of the other's strengths while limiting its capital cost and
maintaining its own identity and culture. The alliance strategy allows our
companies to develop products faster as well as broadening our market
access. And, by generating economies of scale and purchasing synergies, we
further increase our products affordability.
Suzuki and GM are playing a greater role than ever in each other's success.
During the past fiscal year our two companies further strengthened our
alliance in a number of key areas:
The jointly developed compact car, code named YGM-1and first announced
at the 1999 Tokyo Motor Show, made its Japanese debut in October 2001
with the name of "Chevrolet Cruze". Production of the Cruze began at
Suzuki's Kosai Plant in October 2001, and has been successfully sold
through both companies' distribution networks, Suzuki Arena / GM Auto-
world, since November 2001. In April 2002, export of the Cruze began to
Australia, where it is sold as the "Holden Cruze" by a GM's subsidiary,
Holden Ltd.
In Europe, the first jointly developed car by Suzuki and GM, launched early
in 2000 as the Suzuki Wagon R+ / Opel Agila, is now contributing to the
increased sales of both organizations. In Latin America we have continued
to build on our existing collaborations at GM plants in Columbia (GM
Colomotores S.A.), Ecuador (GM del Ecuador S.A.), Venezuela (GM
Venezolana, C.A.) and Argentina (GM de Argentina S.A.). Recent product
additions were the Wagon R+ in Venezuela and the 3-door Grand Vitara in
Argentina.
In addition to leveraging our products and distribution capabilities, a major
benefit comes from the lessons we are sharing with each other in areas such
as manufacturing and quality. Furthermore, to facilitate greater development
and realization of synergies, we have exchanged personnel in the areas of
purchasing, research and development and advanced technologies, which
cover areas such as powertrains, simulation software, and hybrid and fuel-
cell-battery power systems.
The alliance between our two companies is growing stronger, and more
successful, every day. Our two companies will continue to pursue
opportunities for further joint efforts in various fields, and seek to realize
cost reductions, increased sales and the creation of value for our
shareholders.
Suzuki and GM further strengthen strategic alliance.
COVIE, combining Suzuki's EV system and GM's
house-hold fuel cell generating system
SUZUKI MOTOR CORPORATION
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