Suzuki 2003 Annual Report Download - page 2

A MESSAGE FROM THE MANAGEMENT
In delivering our Annual Report 2003, 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, the shipment volume of motorcycles
increased for the first time in six years. As for
automobiles, although mini-vehicle sales declined as
compared to the previous twelve months for the third
consecutive year, sales of small cars, subcompacts
and larger vehicles held steady, and as a result, total
automobile sales showed a slight increase over the
previous year.
In the overseas markets, motorcycle exports to North
America and other markets increased, but exports to
Central and South America, Europe and other markets
dropped. As a result, motorcycle exports as a whole
saw a decrease from the previous year. On the other
hand, due to increases in North America, Europe and
other markets, automobile exports surpassed last
year's level.
Under such circumstances, Suzuki made efforts to
increase sales in the domestic motorcycle market by
enhancing our product lineup through the introduction
of models such as the Choinori and the SKYWAVE 650.
Literally meaning "short time riding", the Choinori is a
functional domestically produced 50cc scooter
available at a highly competitive price of 59,800 yen
while the SKYWAVE 650 is a large-size scooter
featuring the world's first electronically controlled CVT
system.
In the domestic automobile market we made efforts to
boost sales through various measures including the
introduction of Twin -- an economical and highly
practical 2-seater mini-vehicle available in two
versions: one with the first hybrid system on a
production mini-vehicle as well as a gasoline-engine
version. Also introduced into the domestic market were
numerous specially equipped models, including sporty
1.8-liter-engine versions of the subcompact passenger
cars Aerio and Aerio Sedan, and specially equipped
versions of the subcompact passenger car Swift,
offering good value for money. We also concentrated
on upgrading the quality of our small and subcompact
car sales channel, the Suzuki Arena.
Meanwhile, in overseas markets, we introduced
various new motorcycle models including the SV1000S
and new All Terrain Vehicle (ATV) models including the
LT-Z400. As for automobiles, we worked on boosting
exports of completed units, and also took measures to
strengthen and enhance our overseas production
bases, including completing the process of integrating
Maruti Udyog Limited in India and P.T. Indomobil
Suzuki International in Indonesia into Suzuki
subsidiaries.
As a result, our net sales reached ¥2,015,309 million
(US$16,766 million), 120.8% of the previous year, and
our net income reached ¥31,024 million (US$258
million), 138.5% of the previous year.
Dividends at the end of the fiscal year under review
was ordinary dividends 4 yen (US$0.033), plus special
dividends 1 yen, for a total of 5 yen (US$0.041) per
share (9 yen (US$0.074) for the year, including interim
dividends).
We are expecting tough market conditions in the
months ahead. However, we intend to take on this
difficult challenge with our basic corporate policy for
the fiscal year 2003, summed up by the slogan: "In
order to survive, let us stop acting in a self-styled
manner and get back to basics," with which we intend
to bolster our corporate strength by thoroughly
reviewing every aspect of our business, by getting
back to basics and incorporating this spirit in our
business.
In our motorcycle business, we will push forth with
various measures, including the enhancement of our
lineup and sales expansion of our large motorcycles in
the European, North American and Japanese markets,
the introduction of a common model for the Asian
market locally produced in the Asian region, the
promotion of cost-reduction activities and the
strengthening of product development for our All
Terrain Vehicles (ATVs). We will also aim for mutual,
complementary utilization of managerial resources with
our business partner Kawasaki Heavy Industries, Ltd.,
cooperating closely to construct a highly profitable
motorcycle operation.
In our automobile business, in the Japanese
domestic market, we will make efforts to strengthen
and enhance our existing sales network, continue to
implement measures to upgrade Suzuki Arena, our
sales channel for small and subcompact vehicles, and
make sure these efforts can translate into increased
sales of our small and subcompact models. In the
overseas markets, our efforts will include the promotion
of business conduct and product development in a
manner closely suited to each regional market, the
promotion of local procurement of components for our
overseas production bases, and cost-reduction and
quality improvement activities for upgrading our
overseas plants. We will also aim to maximize the
business potential of the synergy gained by our
strategic alliances with Fuji Heavy Industry Ltd., and
each company in the General Motors Corporation
group to reinforce the corporate foundation.
Furthermore, efforts will be taken to develop, in a
speedy and effective manner, products that closely suit
each of the four central markets in the world, and to
introduce them in a timely fashion. And for the
protection of the global environment, we will promote
development of products designed for low
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SUZUKI MOTOR CORPORATION