Suzuki 2010 Annual Report Download - page 4

SUZUKI MOTOR CORPORATION 3
Osamu Suzuki
Chairman & CEO
The Group commits itself to make efforts to pro-
mote the “production of small and subcompact
vehicles” and the “development of environmentally
benign products” needed by customers, and “to be
small, less, light, short and beautiful” on every side
of organization, facilities, parts, environment and so
on as well as production, with the slogan, “Small
Cars for a Big Future”, and has been working for the
efcient, well-knit and healthy management.
Also, our executive officers and employees will
strictly adhere to all statutes, social norms, and in-
house rules, etc., act fairly and with sincerity.
We look forward to the continued support and en-
couragement of our stockholders.
In addition, in research and development, the envi-
ronmentally friendly product development for pro-
tecting global environment such as reduced emis-
sion gas, improved fuel efciency, resource saving
and recycling has become more and more impor-
tant.
In the limited research and development resources,
we will consolidate power trains, standardize parts
and concentrate funding on environmental technolo-
gies.
Further, we make efforts for the development of high
fuel efciency and low emission technologies such
as diesel engine vehicles, hybrid vehicles and elec-
tric vehicles mainly with the product development
abilities for small cars, the strength of the Group,
based on the alliance with each company.
On 9 December last year, the Company and Volk-
swagen AG (“VW”) have reached a common under-
standing to establish a comprehensive partnership.
In terms of product portfolio, global distribution and
manufacturing capacities, both companies ideally
complement each other. The companies plan a joint
approach to the growing worldwide demand for
more environmentally friendly vehicles.
The management of the Company and VW have
concluded that the complementary strengths of
each company make for a perfect fit in exploiting
their respective advantages as well as rising to the
challenge of the global market.
In the automotive industry, where globalization and
diversication proceed in parallel, both companies
will establish a cooperative relationship while re-
specting each other’s independence as a stand-
alone entity. Both companies are focused on
achieving synergies in the areas of rapidly growing
emerging markets as well as in the development
and manufacturing of innovative and environmen-
tally friendly compact cars.
To support a smooth development of this relation-
ship, VW has purchased 19.9% of the Company’s
issued shares and the Company also intends to
invest up to one half of the amount received from
VW(*) into shares of VW.
(*) At the end of March 2010, the Company owns 2,000,000
shares of common stock of VW.