2008 Suzuki Forenza on 2040-cars

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New investor allows Suzuki to fend off VW

After years of legal wrangling, the long-soured partnership between Volkswagen and Suzuki looks finally to be coming out of arbitration, according to Bloomberg. As a sign of the Japanese brand's improved fortunes, hedge fund Third Point LLC recently bought an undisclosed stake in the company. The investor reported seeing a major opportunity in the successful Maruti Suzuki business in India. As an investment, the only major problem that Third Point found with Suzuki was its legal battle with VW. "The company's greatest asset is its low-cost manufacturing process for vehicles for the emerging market consumer," the fund said in a letter, according to Bloomberg. Third Point reportedly also wants a seat on Suzuki's board, despite being a minority shareholder. The alliance between Suzuki and VW goes back to late 2009. In the deal, the Japanese brand was meant to get access to cutting-edge tech, and the German firm got a helping hand towards better establishing itself in India and Southeast Asia. Things didn't go as planned, though. Less than two years later, Suzuki's boss publicly derided the deal. Eventually, the allegations started going back and forth, and the two have been working out a way to untangle practically ever since. Among the biggest issue has been how to get back the 19.9 percent stake that VW purchased. According to Bloomberg, the arbitration is now technically over. With the divorce nearly final, the two sides are just waiting on a decision on how to split things up. Suzuki may even just buy VW's stake to get the shares back.

Suzuki heads rolling over fuel economy scandal

Suzuki Motor Corporation executives admitted last month that the company had been falsifying fuel-economy tests for some of its vehicles. Today, it was announced that chairman Osamu Suzuki will not become CEO and executive vice president Osamu Honda will step down from his position at the next shareholder meeting, which takes place June 29. Executive bonuses for 2015 will also be eliminated or cut in half. The company is also promising to change its corporate culture so as to allow whistle blowers to get their messages heard. "Suzuki has a top-down culture and it's been difficult for voices from lower down to go to the management," Toshihiro Suzuki (Osamu's son) told reporters, according to Bloomberg. Both Suzuki family members will take a pay cut for the last half of 2016 (Osamu at 40 percent, Toshihiro at 30). Over 2 million Suzuki vehicles were involved in the fuel economy fakery. Japan's transport ministry is taking a closer look at company-submitted data after Mitsubishi and then Suzuki were found to have misled regulators and the public. Related Video: News Source: BloombergImage Credit: KAZUHIRO NOGI/AFP/Getty Images Government/Legal Green Hirings/Firings/Layoffs Suzuki Fuel Efficiency resignation osamu suzuki

205k Suzuki models being investigated for airbag sensor issue

The Detroit News is reporting that the National Highway Traffic Safety Administration has opened an investigation on the 2006-11 Suzuki Grand Vitara and 2007-11 Suzuki SX4 due to issues with the airbag and seatbelt for the front passenger seat. So far, NHTSA has received 128 complaints on these vehicles for airbag warning lights, airbag off lights and seatbelt lights, on a vehicle set that totals around 205,000 units, but there is no indication as to how many, if any, injuries have reported.
Via technical service bulletins, Suzuki has already acknowledged two airbag-related issues with front passenger seats on both vehicles, including a programming error for the passenger seat load indicator on 2009 models and an open-circuit problem for the sensor mat that determines if an adult or child is sitting in the front seat. Since this latter issue would not shut off or lessen the impact of the passenger airbag, Suzuki has already extended the warranty for the seat cushion bottom to 10 years or 120,000 miles. After ceasing new-car sales in the US and Canada, potential recall repairs (which still may or may not happen) would be handled by remaining dealers as laid out in the recent court-approved bankruptcy plan.