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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.

2014 Suzuki V-Strom 1000 ABS

Motorcycle trends come and go like fashion, and the latest two-wheeled style du jour is the adventure bike. Chunky and rugged, these (sometimes) dirt-ready rides often take cues from the massive, Armageddon-ready rigs you'd find on the Dakar Rally. In their most neutered form, they can start as street bikes and adapt for adventure duty by adding taller suspension setups, removable saddlebags, bigger fuel tanks, and better wind protection.
Lying smack in the middle of that dirt/road matrix (and leaning toward the tarmac side) is the 2014 Suzuki V-Strom 1000 ABS. A venerable fixture in the adventure scene, it developed a primarily urban following after the model bowed in 2004, though it's also proved itself worthy of tackling trails and light offroad scenarios. For automotive folks not steeped in the vagaries of the motorcycle world, the V-Strom is the two-wheeled equivalent of the late, great Mitsubishi Montero: capable, no-nonsense, and a bit of an unsung hero in the face of more glamorous offroaders like the Land Rover LR4 and the Mercedes-Benz Geländewagen.

Suzuki latest to admit to falsifying fuel economy tests

Suzuki is the latest automaker to be snagged in the broadening scandal of fuel economy falsification. Reuters reports that the head of the Japanese industrial giant admitted that it did not use the proper standards when testing its cars for fuel consumption. "The company apologizes for the fact that we did not follow rules set by the country," said CEO Osamu Suzuki (pictured bowing to reporters), as reported by Reuters. Over 2 million Suzuki vehicles are estimated to be affected. However Suzuki maintains that the company did not intentionally lie or mislead the public or government regulators about its vehicles' economy figures. Japan's transport ministry has ordered domestic automakers to resubmit those figures this week. Though Suzuki withdrew from the North American automobile market nearly four years ago, it remains the fourth largest in Japan (following Toyota, Nissan, and Honda) with particular sales strength in the Kei car segment. Like Honda and Yamaha, the company makes a variety of motorized products, including motorcycles, ATVs, and marine engines. The revelation follows hot on the heels of Mitsubishi's falsification, which broadened in scope from a few Kei cars to every vehicle it has sold in Japan stretching as far back as 1991. The controversy lead to Nissan taking control of a third of Mitsubishi's stock. Prior to that, and on the other side of the world, Volkswagen admitted to engineering its diesel vehicles to cheat emissions tests. Government regulators around the world have launched investigations into numerous other automakers to see how much farther the growing epidemic of falsifying environmental credentials can spread. Related Video: