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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.

Question of the Day: Most heinous act of badge engineering?

Badge engineering, in which one company slaps its emblems on another company's product and sells it, has a long history in the automotive industry. When Sears wanted to sell cars, a deal was made with Kaiser-Frazer and the Sears Allstate was born. Iranians wanted new cars in the 1960s, and the Rootes Group was happy to offer Hillman Hunters for sale as Iran Khodro Paykans. Sometimes, though, certain badge-engineered vehicles made sense only in the 26th hour of negotiations between companies. The Suzuki Equator, say, which was a puzzling rebadge job of the Nissan Frontier. How did that happen? My personal favorite what-the-heck-were-they-thinking example of badge engineering is the 1971-1973 Plymouth Cricket. Chrysler Europe, through its ownership of the Rootes Group, was able to ship over Hillman Avanger subcompacts for sale in the US market. This would have made sense... if Chrysler hadn't already been selling rebadged Mitsubishi Colt Galants (as Dodge Colts) and Simca 1100s as (Simca 1204s) in its American showrooms. Few bought the Cricket, despite its cheery ad campaign. So, what's the badge-engineered car you find most confounding? Chrysler Dodge Automakers Mitsubishi Nissan Suzuki Automotive History question of the day badge engineering question

Suzuki's Paris display is a sad reminder we don't get quirky little Japanese cars anymore

The fun thing about foreign auto shows is getting to see all the cars we don't get at home. In the case of Suzuki, it's a reminder that the brand withered in the US and withdrew due to a lack of product a few years back. What makes it even tougher is that Suzuki's stand in Paris is full of little all-wheel-drive things that would probably do really well in the US now. Talk about bad timing. Take the Ignis above. This thing is about the size of a Mazda CX-3, offers all-wheel drive, and manages to look cute and sophisticated at the same time. Americans would buy it. The SX4 S-Cross, which evolved from the SX4 that did surprisingly well a decade ago in the US, gets an update this year and looks a lot more like a crossover, an improvement on the original funky tall-hatch design. If only Suzuki could have held on a little longer the brand might be taking some sales from Subaru and the many makers of little crossovers. We can't leave here without mentioning the wonderful beigeness of the Cervo hatch that Suzuki brought out to tie the Ignis in with its heritage. It's a rear-engined three-cylinder two-stroke with a Giugiaro-designed body. Yep. The model was never sold in the US, but it was known as the Whizzkid in the UK, which is just fantastic. And its adorable tiny wheels – they looked like 12s or so – are pretty highly stylized. They're actually mirrored by the five-pocket wheels available on the Ignis, which is a nice touch. Related Gallery 2017 Suzuki Ignis: Paris 2016 View 13 Photos Related Gallery 2017 Suzuki SX4 S-Cross: Paris 2016 View 10 Photos Paris Motor Show Suzuki Crossover 2016 paris motor show suzuki ignis