Suzuki 2006 Annual Report Download - page 20

SUZUKI MOTOR CORPORATION
The aforementioned ¥3 trillion in sales is broken down as: ¥900 billion in domestically produced and sold products;
¥900 billion in domestically produced, overseas sold products; and ¥1.2 trillion in overseas produced and sold products.
This marks a significant growth in the latter category.
Each and every one of us in the Suzuki Group will band together to ensure that these target figures are reached as
early as possible within the said period.
5. Outstanding issues
The business environment surrounding the Company is extremely unclear due to the fluctuation of exchange rates
and the increase in competition among companies. Considering these circumstances, the business environments
surrounding the Company has become increasingly tougher.
In order to cope in such difficult circumstances, we are striving to pursue the following motto which represents our
basic policy: “In order to survive, let us stop acting in a self-styled manner and get back to basics”. We intend to make
positive efforts to strengthen our management structure by reviewing our practices in every area of our business.
Moreover, the Company introduces a new operating officer system, reducing the number of directors by half, for the
purpose of agility of management and establishment of clear lines of responsibility in each department. Directors will be
in charge of multiple divisions so that they can look after operations from viewpoint of management in a cross-section
manner, eliminating the negative effects of bureaucratic sectionalism.
In motorcycle operations, for domestic market, the Company will promote the sales expansion of motor driven
cycles and large type of models. In overseas market, the Company will inject the new model which can develop the
brand image of being “sporty, young, unique” which have been cultivated by race activity in Europe and North
American markets. Through the above-mentioned activities, we will develop the lucrative motorcycle operations. Also in
Asian market, as demand for motorcycle is increasing drastically with development of economy, the Company makes
effort for maintenance and expansion of production system as well as injection of the new model which accord with
market needs.
In automobile operations, for both domestic and overseas market, the marketing activities and products supply in a
close contact with the market will be executed. In domestic market, the Company will make efforts to reinforce the sales
force by increasing and training sales persons, also to build and enhance “Suzuki Arena Shops”, for further expansion of
market share. In overseas markets, further level up of overseas bases will be pursued through the automation for quality
improvement, progress in productivity, cost reduction activities and promotion of local procurement of parts at overseas
plants. Furthermore, the reinforcement of the corporate foundation will be strongly promoted. Moreover, efforts will be
made for the development in effective and speedy manner of the products which will match world four-pole markets, and
for their introduction in a good timing.
Additionally, for the protection of the global environment, the product development will be pushed ahead, with due
considerations to environment, in the areas of reduction of gas emissions, improvement of fuel consumption, resource
saving, and recycling, etc. The Company will utilize the effect of technical tie-up with other companies to the utmost
extent, such as for diesel engine with Fiat Auto S.p.A. and for development of hybrid vehicle/fuel-cell vehicle with
General Motors Corporation (GM) and so on.
Although GM group’s equity stake in the Company was lowered to 3.0% by the sale of the shares of the Company it
had owned in March, 2006, constructive affiliation has been continued for twenty-five years since August, 1981 between
the Company and GM. The Company will positively urge the collaboration with GM in various projects such as joint
development of advanced technology, joint venture CAMI operation in Canada and new medium SUV production there,
cooperation of power train development, mutual supply of OEM products, joint global procurement of component, etc.
6. Corporate governance issues
(1) Basic concepts regarding corporate governance
The Company has made it a principle to carry out its corporate activities in a fair and efficient manner, and has
desired to be a company which achieves a sustainable growth by retaining the faith of all our stakeholders
including shareholders, customers, business partners, regional communities and employees, and by making
contribution toward international society. For its fulfillment, the Company recognizes that enhancement of corporate
governance is one of its most important management issues, and makes positive efforts toward the implementation
of various measures.
MANAGEMENT POLICY

20
