The strong yen is eating away profit margins and hurting Japanese carmakers’ sales and as a result, is forcing them to find ways to cut their losses.
Suzuki, which has been hit very hard by the currency exchange rates since it manufactures all of its U.S. market models – sans the Equator pickup truck- in Japan, decided to withdraw from next month’s Los Angeles Motor Show, despite having originally confirmed its participation.
American Suzuki spokesperson Jeff Holland told Automotivenews that the company decided “very recently” to skip the event
The Japanese carmaker’s decision to miss January’s Detroit Motor Show is much less of a surprise, since it hasn’t appeared in the event since 2008.
Holland explains the reasoning behind Suzuki’s move to abandon the LA Show: “For the upcoming season, our brand will selectively participate in auto shows where our distinctive and engaging story will resonate the most.”
For 2012, Suzuki plans concentrate on the 20 U.S. markets in which it has the greatest number of dealers and market share. LA and Detroit do not belong in this category. In fact, in the State of California Suzuki has sold a pitiful 430 cars since January.
The last four years have been difficult for Suzuki in the U.S. market as its sales plummeted from 100,000 units in 2007 to 23,994 units in 2010.
This has resulted to marketing budgets getting much tighter, which is something that Holland is ready to admit: “We’ve got more of a conservative approach going forward”, he commented.
