Suzuki 2010 Annual Report Download - page 27

26 SUZUKI MOTOR CORPORATION
(5)Governmentregulations
Various legal regulations are applied to the motorcycle, automobile and outboard motor industries in relation to the emission
level of emission gas, mileage, noises, safety and contaminated material emission level from the manufacturing plants. These
regulations may be revised, in many cases strengthened. Expenses to comply with these regulations may largely affect the per-
formance of the Group.
In addition, many governments determine the imposition of tariffs, price control regulations and exchange control regulations.
The Group is paying expenses to comply with these regulations and will expect to continue bearing them. We may pay more ex-
penses depending on the establishment of new laws or changes of existing laws. Further, unexpected changes or new applica-
tion of tax systems and economic measures of each country may adversely affect the performance and nancial conditions of the
Group.
(6) Quality assurance
We place the top priority on the product safety and make efforts to establish the quality assurance system from development
to sales. We purchase insurance for the product liability, but there are risks not covered by insurance. The occurrence of large
expenses for a large-scale recall to ensure safety of the customers may adversely affect the performance and nancial conditions
of the Group.
(7)Alliancewithothercompanies
We conduct various alliance activities with other companies for research and development, manufacturing, sales and nance,
but factors that may not be controlled by the Group such as situations inherent to the alliance partners may adversely affect the
performance and nancial conditions of the Group.
(8)Legalproceedings
We may become a party to lawsuits and other legal proceedings in the course of our business activities. In the case where
any judgments disadvantageous to us are made in such legal proceedings, they may adversely affect the performance and nan-
cial conditions of the Group.
(9)Inuencesbynaturaldisasters,wars,terrorismandstrikes,etc.
The major manufacturing plants of the Group in Japan conduct manufacturing activities, located mainly in the Tokai region. In
addition, the head ofce and other facilities of the Company are also concentrated in the Tokai region. Any occurrences of Tokai
earthquake and South East Sea earthquake may largely affect the performance. We have taken various preventive measures
such as quake-resistant measures for buildings and facilities, re preventive measures, establishment of business recovery plans,
purchases of earthquake insurances to minimize the inuences of damage by such disasters.
We conduct businesses around the world and subject to number of risks relating to its overseas operations and any occur-
rences of unexpected events such as political or social instability and difculties, natural disasters, diseases, wars, terrorisms and
strikes may delay or suspend the purchase of raw materials and parts, manufacturing, sales of products, logistics and provision
of services. The prolonged delay and suspension caused by any of these factors may adversely affect the performance and nan-
cial conditions of the Group.
Further, there are various risks other than those mentioned above, and what have been stated in this document do not repre-
sent all the risks of the Group.
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