Suzuki 2002 Annual Report Download - page 3

A MESSAGE FROM THE MANAGEMENT
In delivering our Annual Report 2002, we wish to extend our greetings to
you. With respect to the overall trend of demand in the automotive industry in
this fiscal year, in the Japanese domestic market, shipment volume of
motorcycles dropped for the fifth consecutive year; as for automobiles, while
a number of new models enjoyed strong sales, overall, sales dropped to below
last year's level for mini vehicles, small cars, subcompacts and larger vehicles.
On the other hand, as for exports, motorcycle and automobile exports to
North America and Middle East increased, but overall volume dropped to
below last year's level, due to factors such as drop in exports to Europe.
Under such circumstances, Suzuki, in the domestic motorcycle market,
made efforts to increase sales by enhancing our product lineup by introducing
models such as the Let's II Standard, a domestically produced scooter which
we were able to offer at a low price, and GSX250FX and 250SB, both
supplied from Kawasaki Heavy Industries, Ltd. In the domestic automobile
market, we introduced new models -- Chevrolet Cruze, which was jointly
developed with General Motors Corporation; MR wagon, a mini passenger
car designed with novel thinking to create room for 4 adults to sit comfortably
and to offer a pleasant driving experience; and Alto Lapin, a new mini
passenger car with a boxy shape -- and introduced numerous special-version
models. At the same time, we made efforts to strengthen our small and
subcompact car sales network Suzuki Arena.
Meanwhile, in the overseas markets, we made efforts to increase exports of
completed vehicles by introducing new motorcycle models including the
DL1000, new 400 and 500cc All Terrain Vehicles (ATVs) , and new
automobiles such as the Liana (Aerio Sedan in Japan), a new 4-door sedan,
while at the same time strengthening and enhancing our overseas production
base.
As a result, our consolidated net sales reached ¥1,668,251 million
(US$12,520 million), 104.2% of the previous year, and our net income
reached ¥22,392 million (US$168 million), 110.6% of the previous year.
We can only expect difficult market circumstances in the months ahead.
However, we intend to challenge the difficulties with our basic corporate
motto for the fiscal year 2002: "Challenge 30 & Speedup: The first year of
Suzuki's rebirth to survive", with which we intend to bolster our corporate
strength by making a thoroughgoing, total review and aim for more than 30%
improvement in every aspect of our business by reducing production costs,
heightening quality, improving productivity, and raising the efficiency of our
Osamu Suzuki
Chairman & CEO
Masao Toda
President & COO
indirect work, along with an overall speeding-up of our business.
In our motorcycle business, we will move forth to strengthen our lineup of
large motorcycles in the European, North American and Japanese markets,
strengthen models produced locally in various parts of Asia, strengthen
product development of All Terrain Vehicles (ATVs) and press ahead with
their local production in U.S.A. We will also move forth to establish a highly
profitable motorcycle business by working together with Kawasaki Heavy
Industries, Ltd., with which we formed a business alliance from August last
year, to complement each other's business resources.
In our automobile business, in the Japanese domestic market, we will make
efforts to strengthen our existing sales network and enhance our sales bases,
strive to heighten the quality of Suzuki Arena -- our sales network for small
and subcompact vehicles -- and make sure such efforts will translate into
increased sales.
In the overseas markets, we will make efforts to conduct business and
create products in a manner closely suited to each market, and strongly push
forth with local procurement of components for our overseas plants, use of
common components across borders, optimized worldwide purchasing, and
quality improvement activities. We will also make efforts to boost our basic
corporate strength by making maximum use of the synergy effect of our
strategic alliances with General Motors Corporation and Fuji Heavy
Industries Ltd.
In addition, we will further strengthen our product development efforts to
heighten the safety and consumer appeal of our products, and we will make
efforts to develop products that our customers demand in an efficient and
speedy manner, and market them in a timely fashion. For the protection of the
global environment, we will promote development of products designed for
low environmental impact by reducing emissions, improving fuel efficiency,
and reducing the amount of natural resources required for production, and will
develop next-generation vehicles such as vehicles powered by hybrid and
fuel-cell powerplants. Suzuki, with our motto "Small Cars for a Big Future,"
is determined to continue our active efforts to develop small cars that
customers demand, and to make efforts to ensure our products have low
impact on the global environment.
We are sincerely looking forward to your continuing support and
encouragement of our business.
June 2002
SUZUKI MOTOR CORPORATION
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