1983 Amc Eagle Sx4 Sport on 2040-cars

Auto blog

Suzuki posts 46% drop in first-quarter profit on slowing India demand

TOKYO — Suzuki on Monday reported a 46.2% fall in first-quarter operating profit, hurt by lower output at home as it improves its inspection systems, and falling demand in India, its biggest market. Japan's fourth-largest automaker posted an operating profit of 62.7 billion yen (GBP487 million) for the April-June quarter, down from 116.5 billion yen a year earlier and below a mean forecast of 69.09 billion from eight analysts, according to Refinitiv. Suzuki reaffirmed its forecast for full-year operating profit to come in at 330 billion yen, up 1.7% from the year ended March 2019. Suzuki, known for its Swift and Baleno compact models, is bracing for subdued growth this year in India, where roughly one in two cars sold carries its brand. The company stuck to a forecast for vehicle sales to increase slightly on the year, but conceded that it may need to trim its forecasts in the coming months as slowing economic growth and stricter emissions standards could dent sales. Slowing profit growth could hamper its ability to invest in and develop lower-emissions vehicles and on-demand transportation services necessary to survive the technological upheaval currently underway in the global auto industry. The automaker has long acknowledged that it cannot shoulder the costs of developing electric vehicles and self-driving cars on its own, and has turned to Toyota to supply Suzuki vehicles with its gasoline hybrid systems.

Suzuki teases production C-segment crossover, could it have saved them in US?

Suzuki may be retreating (amidst booming sales) from the US market, but its efforts to woo European buyers are still going strong. Witness as proof these shadowy teaser images of the automaker's new C-segment crossover that it plans to unveil at the Geneva Motor Show next month.
Until the official debut, we've got just a few tidbits of information to report about the upcoming Suzuki. We're told, and can see, that the car has been modeled on the S-Cross concept car from the 2012 Paris Motor Show. Quite a bit of translation has happened, however, from show car to production form, as we see that the sweeping greenhouse of the S-Cross has been ditched in favor of a traditional pillared setup, large LEDs have moved from the lower front fascia to under the headlamps, and the grille is now much more in line with the rest of Suzuki's current range. The crossover is still painted in a faintly froggish shade of green, though, so the weirdness hasn't been completely leeched out.
We're also informed that the new C-segment offering will have an available a four-wheel-drive powertrain and one of the largest luggage areas in the segment. All of which strikes us as good stuff, but we're still not convinced that this unnamed entrant could have turned the Japanese automaker's fortunes in North America - even if it would have competed in one of the industry's fastest-growing segments. Feel free to read over Suzuki's brief press release below and look at the images before speculating for yourself in Comments.

Japan may aid carmakers facing U.S. tariff threat

TOKYO — Japan is considering giving carmakers fiscal support including tax breaks to offset the impact from trade frictions with the United States and a sales-tax hike planned for next year, government sources told Reuters on Wednesday. Going into a second round of trade talks with the United States on Sept. 21, Japan is hoping to avert steep tariffs on its car exports and fend off U.S. demands for a bilateral free trade agreement that could put it under pressure to open politically sensitive markets, like agriculture. "If the trade talks pile pressure on Japan's car exports, we would need to consider measures to support the auto industry," a ruling party official said on condition of anonymity because of sensitivity of the matter. The auto industry accounts for about 20 percent of Japan's overall output and around 60-70 percent of the country's trade surplus with the United States, making it vulnerable to U.S. action against Japanese exports. Japan's biggest automakers and components suppliers fear they could take a significant hit if Washington follows through on proposals to hike tariffs on autos and auto parts to 25 percent. Policymakers also worry that an increase in the sales tax from 8 percent to 10 percent planned for October 2019, could cause a slump in sales of big-ticket items such as cars and home. Prime Minister Shinzo Abe has twice postponed the tax hike after the last increase from 5 percent in 2014 dealt a blow to private consumption, which accounts for about 60 percent of the economy. To prevent a pullback in demand after the tax hike, the government may consider large fiscal spending later when it draws up its budget for next year, government sources said. "One option may be to greatly reduce or abolish the automobile purchase tax," one of the government sources said. The government is also considering cuts in the automobile tax and automobile weight tax to help car buyers, the source added. Reporting by Izumi Nakagawa and Tetsushi KajimotoRelated Video: Image Credit: Getty Government/Legal Isuzu Mazda Mitsubishi Nissan Subaru Suzuki Toyota Trump Trump tariffs trade