Suzuki 2003 Annual Report Download - page 12

SUZUKI MOTOR CORPORATION
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11
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Strategic Alliance with General Motors Corporation
Suzuki and General Motors Corporation (GM) began a
business partnership in August 1981 and the partnership has
yielded solid results ever since. In September 2000, we
announced a further strengthening of our strategic alliance.
GM's equity participation in Suzuki has now grown to 20.3% of
shareholder voting rights.
Both companies are making efforts that our strategic alliance
will enable us to work together - while allowing each company to
express its individual strengths - to develop products quickly
and keep investment costs down while speeding up and
broadening our market access.
During the previous fiscal year, we have expanded and
strengthened the alliance in various markets. Some of the most
notable fruits of our alliance are, in chronological order:
* Exports of Holden Cruze to Holden Ltd., GM's subsidiary in
Australia, began in April 2002; approx. 5,000 units were shipped
as of end of March, 2003. The Cruze is a model jointly
developed by GM and Suzuki and produced at Suzuki's Kosai
Plant. Inside Japan, it is named the Chevrolet Cruze; its sales
began on November 2001 and it is distributed through sales
channels of both GM Japan and Suzuki.
* In June 2002, GM, Suzuki, Fuji Heavy Industries Ltd. and
Isuzu Motors Limited established an Alliance Purchasing Team
(APT) for the four companies' joint purchasing of specific items.
Under this arrangement, which utilizes GM's Worldwide
Purchasing (WWP) process, suppliers for selected parts and
components are chosen in accordance with the evaluation
ratings set forth by WWP in terms of quality, service, technology
and cost. The four companies, through integration of
purchasing volume made possible by joint purchase and by
sharing human resources in the field of purchasing, will seek to
reduce cost and aim toward further improvement in the
suppliers' quality and efficiency.
* In June 2002, GM and Suzuki reached formal agreement on equity
participation in the newly formed company GMDAT (GM-Daewoo
Auto & Technology). Furthermore, an announcement was made in
February 2003 that, as the first specific decision following equity
participation, three passenger-car models produced at GMDAT will
be sold under the Suzuki brand through Suzuki's North American
sales network, from 2004 model year.
* Also in February 2003, Suzuki's Arena sales channel in Japan
began offering the Chevrolet TrailBlazer, which is produced by GM in
North America. Furthermore, basic agreement was reached that
starting from the 2004 models, Suzuki will conduct the importing,
sales and after-sales servicing of Chevrolet vehicles inside Japan.
As these examples illustrate, GM and Suzuki, through our long-term
and outstanding strategic alliance, will continue to pursue realization
of cost reduction and increased sales, and the creation of value for
our shareholders.
Suzuki and GM further strengthen
strategic alliance.
Chevrolet CRUZE, produced at Suzuki's Kosai
Plant.
Chevrolet TrailBlazer, Suzuki's Arena sales
channel in Japan began offering.
c The Chunichi Shimbun