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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.

Larger SX4 to lead raft of new or revised Suzuki models

A few weeks ago, we showed you what is likely in store for the next-generation Suzuki SX4, but What Car? now has some insider info of what might be in store for other products in the aging Suzuki lineup... at least in the UK.
When the official design sketch of the Suzuki S-Cross concept was released, Suzuki said that the concept car would be a C-segment crossover, closer in size to the Grand Vitara, and going up against some higher-volume rivals like the Ford Kuga (Escape) and Nissan Qashqai (similar to our Rogue). The Suzuki Grand Vitara is also due for a redesign, and both models will likely be on showroom floors together, with the Grand Vitara acting as the more rugged alternative to the hatchback-like SX4 replacement. Not much is known about the new Grand Vitara, but a new satellite navigation system is expected to debut in the SUV and eventually spread into other Suzuki models.
Suzuki will start selling the new SX4 and Grand Vitara in the United States this fall, and these two new crossovers should be a welcome addition to the company's diminutive U.S. dealer network that has been starved of product since the early 2000s. Automotive News adds a little gloom to this topic by pointing out that, after the introduction of the new SX4 and Grand Vitara this fall, American Suzuki has no new products planned through the 2015 model year. Suzuki dealers in Europe are more fortunate, as a refreshed version of the Jimny (formerly known as the Samurai here in the States) and an all-new Alto will both be joining the lineup.

EU finds Jeep Grand Cherokee and Suzuki Vitara break emissions rules

AMSTERDAM — Fiat Chrysler's Jeep Grand Cherokee and Suzuki's Vitara diesel models both break emissions rules and must be fixed or face a ban on sales across Europe, the Dutch road authority ruled on Thursday. The RDW authority, acting as the reference regulator for across the European Union, said Jeep had developed a software fix and that the authority had ordered the company to recall the model across Europe to roll it out. It added Suzuki had yet to find a credible solution for the Vitara. "Suzuki must come with adequate improvement measures or the RDW will begin the process of revoking its European type approval," the RDW said in a statement, adding it had also started the process of revoking approval for the Jeep Grand Cherokee as a "precautionary measure." Regulators across the world have been testing diesel models since Volkswagen admitted in 2015 that it used illegal software to cheat U.S. emissions tests. The RDW said it had found both the Jeep Grand Cherokee and Vitara had used "prohibited emissions strategies" that led them to emit higher levels of harmful nitrogen oxide (NOx) on the road than under testing conditions. Dutch State Secretary for Infrastructure, Stientje van Veldhoven, said in a letter to parliament she would inform prosecutors of the RDW's findings. Fiat Chrysler and Suzuki could not immediately be reached for comment. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.