1987 Suzuki Samurai on 2040-cars

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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.

Junkyard Gem: 1998 Suzuki Swift, Schnorchel Edition

To enable the use of internal-combustion engines underwater, German submarines during the later years of World War II used a pipe system swiped from the Dutch to suck in air and spit out exhaust. This rig was known as the Schnorchel, and a similar setup can be used on modern trucks to keep the engine from inhaling water or dust during river-fording or off-roading. In fact, you can buy a new Ford Bronco with a factory schnorchel (or snorkel, if you prefer the English spelling) right now. Purchasers of new Suzuki Swifts, however, had no such factory — or even aftermarket — option, and so the final owner of today's Junkyard Gem had to fabricate one using hardware-store components. Yes, this is a fully functional air-intake snorkel, made from PVC pipe and entering the engine compartment via not-so-precision holes sliced through the fender and inner fender. Once in the engine compartment, the pipe connects directly to the engine's throttle body. Sure, for serious underwater use you need to waterproof the distributor plus any sensitive electrical components, not to mention find some way to keep water from getting into transmission vents and the like. We can assume, however, that this snorkel wasn't intended for sustained underwater use. Other limitations of the Swift as an off-road machine, such as suspension design, ground clearance, and lack of four-wheel-drive, may have become apparent once the snorkel was installed. There are some wheel flares installed, to enable the use of oversized wheels and tires. The Swift is the same car as the Suzuki-built Geo Metro, which became the Chevrolet Metro starting in the 1998 model year. Known in its Japanese homeland as the Cultus, these cars were sold in every far-flung corner of the world. It appears that you could buy a new Cultus (with Margalla badges) in Pakistan as recently as a few years ago. This isn't the first interestingly modified second-generation Swift I've found in a Denver-area car graveyard in recent years. Perhaps the "Slokyo Drift" 1996 Swift was modified by the same person. There's just something about a tiny, fully depreciated car that inspires creativity. The 1998 Geo Metro was available with either a 1.0-liter three-cylinder engine or a 1.3-liter four-banger, but every new Swift sold here that year was a big-block car with the 1.3 and its 70 horsepower. This one even has the five-speed manual transmission, for added driving fun. Just 166,280 miles on the clock.

Japan could consolidate to three automakers by 2020

Sergio Marchionne might see his dream of big mergers in the auto industry become a reality, and an analyst thinks Japan is a likely place for consolidation to happen. Takaki Nakanishi from Jefferies Group LLC tells Bloomberg the country's car market could combine to just three or fewer major players by 2020, from seven today. "To have one or two carmakers in a country is not only natural, but also helpful to their competitiveness," Nakanishi told Bloomberg. "Japan has just too many and the resources have been too spread out. It's a natural trend to consolidate and reduce some of the wasted resources." Nakanishi's argument echoes Marchionne's reasons to push for a merger between FCA and General Motors. Automakers spend billions on research and development, but their competitors also invest money to create the same solutions. Consolidating could conceivably put that R&D money into new avenues. "In today's global marketplace, it is increasingly difficult for automakers to compete in lower volume segments like sports cars, hydrogen fuel cells, or electrified vehicles on their own," Ed Kim, vice president of Industry Analysis at AutoPacific, told Autoblog. Even without mergers, these are the areas where Japanese automakers already have partners for development. Kim cited examples like Toyota and Subaru's work on the BRZ and FR-S and its collaboration with BMW on a forthcoming sports car. Honda and GM have also reportedly deepened their cooperation on green car tech. After Toyota's recent buyout of previous partner Daihatsu, Nakanishi agrees with rumors that the automotive giant could next pursue Suzuki. He sees them like a courting couple. "For Suzuki, it's like they're just starting to exchange diaries and have yet to hold hands. When Toyota's starts to hold 5 percent of Suzuki's shares, this will be like finally touching fingertips," Nakanishi told Bloomberg. "I absolutely do believe that we are not finished seeing consolidation in Japan," Kim told Autoblog. Rising development costs to meet tougher emissions regulations make it hard for minor players in the market to remain competitive. "The smaller automakers like Suzuki, Mazda, and Mitsubishi are challenged to make it on their own in the global marketplace. Consolidation for them may be inevitable." Related Video: