Suzuki 2004 Annual Report Download - page 2

A MESSAGE FROM THE MANAGEMENT
In delivering our Annual Report 2004, we wish to
extend our greetings to you.
With respect to the overall trend of demand in the
automobile industry during this fiscal year, in the
Japanese domestic market, the shipment volume of
motorcycles saw a decrease from the previous year.
As for automobiles, mini-vehicle sales increased
compared to the previous twelve months for the first
time in four years. However, no significant growth
could be attained from sales of small cars,
subcompacts and larger vehicles. The overall result
was a slight increase over the previous year in total
automobile sales.
In overseas markets, motorcycle exports to Europe
and other markets increased, but exports to North
America slipped. As a result, motorcycle exports as a
whole saw a decrease from the previous year. On the
other hand, due to increases in markets such as
Europe and Southeast Asia, automobile exports slightly
exceeded last year's level, despite decreases in North
America and other markets.
Under these circumstances, Suzuki focused on
increasing sales in the domestic motorcycle market by
enhancing our product lineup through the introduction
of models such as the Choinori SS and ST250. In the
domestic automobile market we made efforts to boost
sales through various measures including the
introduction last September of the new Wagon R mini
passenger car - the third generation of a model first
introduced in 1993 - along with the introduction of
numerous specially equipped versions of the
subcompact passenger cars Chevrolet Cruze, Wagon
R Solio, Swift and other models. We also focused on
promoting the maintenance and development of our
small and subcompact car sales channel, the Suzuki
Arena.
Meanwhile, in overseas markets, we introduced a
number of new motorcycle models including the GSX-
R600, GSX-R750 and V-Strom(DL650) , and new All
Terrain Vehicle (ATV) models including the Twin Peaks
700 4 4(LT-V700F) . We made efforts to strengthen
our overseas production bases for our automobiles.
This included boosting production at Maruti Udyog
Limited in India, which were incorporated into Suzuki
subsidiaries during the previous year, and PT
Indomobil Suzuki International in Indonesia and
starting production of the new passenger car Ignis at
Magyar Suzuki Corporation in Hungary.
As a result, our net sales in this fiscal year were
¥2,198,986 million (US$20,806 million), 109.1% of the
previous year. In terms of profits, through cost reduction and
other efforts, our net income reached ¥43,835 million,
(US$415 million), 141.3% of the previous year.
Dividend at the end of the current fiscal year was
ordinary dividend of 4 yen (US$0.038), plus special
dividend 1 yen, for a total of 5 yen (US$0.047) per
share (9 yen (US$0.085) for the year, including interim
dividends).
Tough market conditions are expected in the months
ahead. However, we fully intend to overcome this
difficult challenge - our basic corporate policy for the
fiscal year 2004 , summed up by the slogan: "In order to
survive, let us stop acting in a self-styled manner and
get back to basics." By which we mean we intend to
make a thorough review of every aspect of our
business to further develop our corporate strength.
In order to construct a highly profitable operation for
our motorcycle business, in the domestic market, we
will make efforts to increase sales of the Choinori - a
domestically produced scooter which played a major
role in the growth of our market share this year - as well
as boost sales of our larger motorcycles. In overseas
markets, we will take measures to increase sales of
small motorcycles in the ASEAN region and to increase
sales of large motorcycles in the European and North
American markets.
For our automobile business, in the Japanese
domestic market, we will concentrate on the
strengthening and developing of our existing sales
network, boost our understanding of the market,
heighten customer satisfaction, strengthen the sales
capability of Suzuki Arena, our sales channel for small
and subcompact vehicles, and make sure these efforts
translate into increased sales of our small and
subcompact models. In overseas markets, our efforts
will include the promotion of business conduct and
product development in a manner closely suited to
each regional market, along with the promotion of
quality- and productivity-boosting automation, local
procurement of components, cost-reduction activities
and other measures, to further strengthen our overseas
production bases. We will also aim to maximize the
business potential of the synergy gained by our
strategic alliances with General Motors Corporation as
well as each company in the GM group to reinforce our
corporate foundation.
Furthermore, efforts will be taken to develop, in an
effective and efficient 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
environmental impact by reducing gas exhaust
emissions, improving fuel efficiency, reducing the
amount of natural resources required for their
production and facilitating recycling. We will also
develop next-generation vehicles such as vehicles
powered by fuel-cell systems.
Under the motto "Small Cars, - for a Big Future,"
Suzuki has set out its determination to continue active
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SUZUKI MOTOR CORPORATION