Suzuki 2008 Annual Report Download - page 22

SUZUKI MOTOR CORPORATION 21
4. Outstanding issues
The business environment surrounding the Suzuki Group is extremely opaque due to fluctuation of exchange rates,
increase of material price etc., and competition among companies will be increasingly tougher.
In order to cope with such stringent circumstances, the Suzuki Group selected the following motto to represent our basic
policy” In order to survive, let us stop acting in a self-styled manner and get back to the basics”, positively making efforts for
the strengthening of management structure through reviewing our practices in every area. Moreover, the Company puts up a
slogan of “Let’s speak up” and makes efforts to enhance the cooperation and communication between divisions and enhance
compliance with laws and regulations.
In motorcycle operations, for domestic market, the Company will promote the sales expansion of motor driven cycles and
large type of models. In European and North American market, the Company will inject the new model which can develop the
brand image of being “sporty, young, unique” cultivated by race activity. Through these activities, we will develop the lucrative
motorcycle operations.
On the other hand, to cope with poor sales of small motorcycles in Asian market, the Company will promote injection of new
models which suit market needs, strengthen sales forces and improve quality/production system.
Also, as for motorcycle and ATV business in North American market in which the sales is slow due to increase of petrol
price and subprime loan crisis, the company will rearrange the market by marketing unique and original big motorcycles.
In automobile operations, 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, the Company will try to
improve SUZUKI brand image by using the slogan of “Way of life” and increase the level of overseas bases through promotion
of local procurement of parts, cost reduction activities, further improvement of quality and further progress in productivity, as
well as sales enhancement.
Further more, we will build a new plant for subcompact vehicle production in this autumn, with a scale of 260 thousand units
per year, in Sagara plant site to cope with the ever-increasing foreign demand and chronic shortfall of production capacity. In
overseas plants, production capacity will be strengthened in Maruti Suzuki India Ltd., and others.
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.
Also, the Company and GM have been continuing constructive affiliation from August 1981. 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 cooperation of power train development, mutual supply of OEM products, joint global procurement of
component, etc.
5. 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.
(2) Organization of the Company
(a) Directors/board of directors
On the occasion of enforcement of the Companies Act in May 2006, in terms of enhancement of the corporate
governance, the Company has undertaken substantial organizational reform and laid the current management system
aiming at agility of management, speedup of operation and clarification of responsibilities. Specifically, while the number
of directors has been reduced by half against before, a new managing officer system (senior managing executive
officers and managing executive officers) has been introduced so that all directors, excluding the chairman and the
president, play a central executive role by concurrently holding the office of senior managing executive officers.
Also the Company adopts divisions system so that all senior managing executive officers(Board Member) participate
in decision-making at board meeting through providing on-site information by assuming as executive general manager
or deputy executive general manager. Furthermore the Company has the system which each senior managing executive
officers(Board Member) assist the other related divisions in order to eliminate the negative effects by bureaucratic
sectionalism and control the operation in a cross-section manner from management perspective.
Management Policy