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In addition the critical role of the government financing GMAC is reflected in this article as well. Without that assistance American Suzuki would have no financing to offer dealers. Another insightful decision is to partner with dealers and work with them to alleviate the finance and pricing pressures by not pushing the 2009 models in them. Compare this strategy to others in the auto industry who seeks to make their dealers carry the brunt of the inventory costs, GM included, and this strategy will pay off in the long run for the Japanese auto manufacturer. In addition, Ford continually pressures its dealers to take on new models even if they have inventory positions. This decision by American Suzuki will solidify the loyalty of their channel partners.
Recommendations
After the initial success of the Grand Vitara in 2004 and continuing through 2008 as the recession began to significantly slow...
The company has invested heavily in dealer development and sales training to get where they are today. Recommendations for American Suzuki include bundling in more accessories and upgraded Grand Vitaras and XL7 SUVs and also working to create their own consumer leasing programs by partnering with larger, global banks. The company also needs to seek assistance in its native Japan for floorplanning financing programs that can be introduced to American dealers. Third, American Suzuki competes heavily with Kia and other low-end auto brands. It needs to use this time to grow its customer base by targeting other economical brands with comparative advertising, pricing and promotional programs as well.
References
Jackson, K. "Dealers like Suzuki's plan to cut inventory glut. " Automotive News 2 Feb. 2009:
Link: http://www.autonews.com/article/20090202/ANA06/902020325/1178
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