Entering 2009, Suzuki’s sales were in the toilet. Zook dealers were moving about 3,650 units nationwide in December 08 and January 09. Things got even worse in February, as sales eroded to under 3,500 units. By February, the few remaining Suzuki dealers were applauding the firm’s decision to “not aggressively market 2009 models,” thanks to 100+ day supplies of ’08s, according to AN [sub]. In March, however, amid the news of further dealer closures, Suzuki sales suddenly did an about-face. Sure, XL7 continued to tank (down 73 percent) while Forenza/Reno and Grand Vitara saw industry-average declines (-43 and -33 percent, respectively). But Suzuki has been saved by its most competitive product: its SX4’s sales hit 4,794 units last month, single-handedly eclipsing total sales results from many previous months.
On the one hand, this is not a huge surprise. Suzuki’s February decision to cut back on dealership deliveries was accompanied by a $4K incentive on SX4, Grand Vitara and XL7. Then-TTAC contributer Johnny Lieberman praised the SX4‘s styling, ergonomics, value and performance, even favorably comparing the Suzy’s handling to his own beloved WRX. Though the model has undeniable downsides (notably freeway performance and mpg), it seemed to be one of those cars that car writers love but has buyers lined up none-deep. Already the cheapest AWD offering on the US market at $16,439 ($17K and small change for navi-equipped models), $4K on the hood makes the SX4 Wagon a downright steal.
Surprise! Automotive News [sub] reports that SX4 incentives were down to $1K during the March buying spree. And that’s with credit-crunch APR rates of 7.9 to 10.9 percent. And here’s the really weird part: according to AN, three-quarters of March SX4 sales were of FWD-only sedan sales. Clearly folks weren’t tuning into the auto-journo-beloved value proposition of the Impreza-lite SX4 wagon. Something else is going on. Is it Suzuki’s “mightier than MINI” ad campaign? Is Suzuki grabbing fleet sales from Chrysler and GM residual-weary rental firms? Or does the SX4 sedan offer something that has failed to catch the eye of typically enthusiast-oriented car reviewers? I hope to answer this last question by driving a few of these unlikely sales heroes (if I can find one . . . Suzuki is warning of shortages). In the mean time, a larger question looms: is it possible that we wrote off Suzuki too soon? Can firms that appear to have been wholly abandoned by consumers make a sudden comeback? Or am I missing something?
When I was shopping for my Versa, I drove the SX4 wagon, and really liked it. In fact, the only reason I ended up not buying it was the distance between myself and the dealer. It’s a great little car.
Suzuki has a pretty firm base in Japan (yes, I know the market is tanking there too). However, from what I see, Zook has the sort of brand loyalty that Volvo and Saab used to have. A slightly out of the mainstream brand with a unique character (inexpensive AWD). I don’t get the sedan part though…it’s not nearly as attractive as the hatch.
Suzuki is doing great. They make motorbikes. BIG sellers right now, especially in the 3rd world. Suzuki is the largest brand in India, one of the few growth markets. Auto sales in India recovered over the first quarter.
I’m a fan of the SX4 as well and have been noticing them on the roads with greater frequency around here (Philadelphia). Do the SX4’s strong sales numbers bode well for Fiat’s re-entry into the US market, given they co-developed this hatch?
fitisgo
No.
Ha. Good point.
It’s a good car, but all-wheel drive raises the price, the mass, and the fuel burn in a market that’s sensitive to all three and doesn’t really care that much about AWD in the first place.
I passed by it because, truthfully, anywhere I want to go I’ll manage with snow tires, or will need to borrow my father’s 4Runner.
psarhjinian, did you miss the part about the sales being mostly FWD sedans?
I’d like to know what’s going on with Suzuki as well, because their already scummy-scammy dealerships dropped like flies.
My favorite was this one:
http://www.goupstate.com/article/20080401/NEWS/651169002/1051/NEWS01
Where the dealer promised ridiculously low payments that nobody would ever be able to obtain. Seriously, who would want to buy a -new- car from such scumbags? I’d figure in this economy, people would flock towards Honda or Nissan- getting an air of quality and stability so they know their car is good for the long haul. Guess not.
Bertel: I should have clarified that I was talking specifically about Suzuki’s US market presence. Or lack thereof.
I can say that our on-site Hertz rental outlet has acquired several SX4 sedans as of late, when they had none several months ago. They appear to have taken the place of the Corollas that used to take up parking space in months before. So maybe fleet sales have boosted numbers somewhat.
I’ve often wondered about Suzuki. It’s curious to me that Hyundai/Kia seems to be enjoying great success, but the seemingly well built Suzuki models —that is, those which are not rebadged Daewoos— have yet to find much favor with buyers here. I noticed several weeks ago that a rather large Suzuki dealership near me had vaporized, and it was actually quite alarming. This particular dealership had always been reasonably busy, and was a very central, easily accessed location. *Poof!*, just gone. It was just there a few months ago.
I don’t quite get why auto companies like Chrysler, Mitsubishi, and a few more, can exist by selling total garbage, and Suzuki can fail while selling generally good products. I guess Chrysler won’t be around for much longer, so that’s moot, but the point still stands. Suzuki builds some good stuff, why do people not buy it?
Just priced one on CarsDirect. Now just a 500 rebate, but the 2008 XL7 is 6K off making it the same price thereabouts as the SX4. $18,600 for the SX or $19,200 for the base ’08 XL (no navi).
I think Suzuki may survive, as well. I actually wrote to the company (never got a response) suggesting that they actually merge with Mitsubishi, take over Mitsubishi vehicles (and dealerships) worldwide, sell all vehicles under the Suzuki banner (much as what happened with Nissan borgified Prince in 1966). But I suggested a difference; Mitsubishi Heavy Industries and Mitsubishi Bank (Mitsubishi Motors’ “parents”) should retain a portion of ownership in the Suzuki-Mitsubishi Motors concern, for financial stability.
They’d make a good fit. And a full US line-up. With more dealer-points (more of which would be forthcoming with the imminent demise of Chrysler)
Upcoming MiEV electric car
Upcoming Swift subcompact car
SX4 sedans and hatches
Lancer
Upcoming Kizashi mid-sized car
Outlander SUV
(Nissan produced) Equator pickup
XL7 SUV
Suzuki has finally rid itself of the Daewoos. It could have a pretty good lineup with its own Swift (not sold here), SX4 and Grand Vitara.
Right now it is still moving a rebadged Chevy Equinox (XL7) and a rebadged Nissan Frontier (Equator).
The sales spike was probably because of the “Buy an SX4 before March 31 and we’ll put a Hayabusa motor in it” promotion.
http://www.suzukiauto.com/
Interesting timing of this article. I just passed by our local Suzuki dealer (which is in an out of the way old used car lot) and wondered how they could possibly still be in business. They do have the rebadged Frontier pickup now but really they do no volume. Not sure how they even pay the electric bill much less employees salaries.
The Swift is coming to North America again, probably within a year, unless changes have happened. At one point, there were rumors that the Kazashi mid-sized (Camcord competitor) had been cancelled; apprarently not true. It’s coming this fall. I think a tall station wagon and SUV variant will also be arriving. The car apparently will have a new 2.5 / 4 and 3.6 / V6.
In my hypothetical Suzuki (+Mitsubishi) line-up I forgot one of the most important cars.
Evo.
Suzuki can tough it out if they want to, because they are #1 in car sales in Japan (surprisingly), India and are fairly high in China, too.
Everyone forgets that normal people simply don’t follow the car industry, and even the car shows don’t really generate exposure for new products. So Suzuki has been showing us the SX4 for over a year now and no one else got the memo.
Personally I like the car, but until that ad campaign started I wouldn’t have bothered bringing it up with the non-car obsessed. Good for them on finally getting it together.
Last summer, I was car-shopping for something inexpensive and relatively versatile. Personally, I liked the SX4 a lot until I saw its fuel economy figures. Even the FWD model isn’t anything to write home about in that department, and the AWD fuel economy is just inexcusably poor. I ultimately ended up with an 06′ Accord 4-cyl, which is both much larger and much more fuel-efficient.
Oh, and the “Mightier than the Mini” ads are simply annoying and very stupid.
@tedward: “Everyone forgets that normal people simply don’t follow the car industry…”
My wife reminds me of this at least once or twice a week when I share another car industry tidbit at the dinner table.
I, too, like the new zook SX4. Then again, I enjoy small cars in general.
psarhjinian, did you miss the part about the sales being mostly FWD sedans?
Yup. I did.
Now, in my defense I’ve never seen an SX4 sedan on the road, but I have seen several hatches. Of course, I’m from Canada. We have taste.
I think the slight SX4 sales increase in March was due to the amount and times it snowed this winter. People think they need something to get around better when it’s white outside.
At the Chicago auto show Suzuki booth, the girl there told me on top of the 1000 rebate, 250 auto show bonus, I could get an additional $1000 buyer loyalty cash for trading in my Aerio & getting the SX4. Sitting in the SX4 at the show, felt like my Aerio was at the show, no discernable difference inside.
At the time (feb ’05) the Aerio was 2-3K cheaper than a Civic or Corolla and roomier inside, peppier engine, etc. I took a hit at trade in time though (Mar ’09 @ 39K miles on it). Ford ealer would only give me 3500 until I said I’m leaving & would get 5000 selling it myself. He caved & it was on their website next day for $7680. A week later it wasn’t on the site anymore, apparently sold.
It’s a mystery to me. I had an SX4 rental last year and it really wasn’t anything special (soft suspension & buzzy engine) but I guess it did have decent passenger and cargo room so maybe at a Versa price it makes sense.
The Swift is coming to North America again, probably within a year,
In Canada, they sell a low-content, rebadged Aveo as the Swift+. Pray that’s not what you get.
At one point, there were rumors that the Kazashi mid-sized (Camcord competitor) had been cancelled; apprarently not true. It’s coming this fall.
Isn’t (wasn’t?) the Kizashi a GM Epsilon car?
Suzuki is definitely a player internationally, and IMHO the brand still has plenty of US potential, if done right. The new Swift (I saw many of them in Barbados late last year) could be a Fit-killer, maybe even a MINI-killer (especially on what I’d assume price to be). I’d really like to see that come state-side. But, we’d need some solid dealers.
The SX4 definitely has a place in the “gotta have 4WD” areas like Seattle, but I see a few of them in the Bay Area, too. The FWD sedan sales are indeed a mystery, but I could see them being shopped against Versa/Fit/Yaris. Overall, a nice design and good package, albeit with a few cheap/under-engineered bits.
Best part about the SX4 hatch is that it is real easy to see out the back and sides while driving/backing up.
Re: That commercial. Yeah, right. Like someone looking at a MINI is going to cross-shop a Suzuki. And apparantly you have to shift it into 4WD just to drive across a pothole. Yep. Really makes me want to go out and drive one.
Actually I drove an SX4 4-door (FWD) for a week last summer and really liked it. It was roomy, peppy (with the manual transmission) and fun to drive. Too bad they don’t know how to market it.
I have a 6-year-old Aerio with 105K miles that I bought new. I’m 56 and have owned a lot of cars and the Suzuki fits its purpose as well as any car I’ve owned.
Its a bit tinny, but it still looks good when washed and waxed. Its a bit cheap inside, but all accessories, windows and mirrors still work and always have. Its a bit thrashy, but that’s the sound of a $400 timing belt change you DON’T pay for with Suzuki since they use chains.
One never knows, but it looks like my commuter should be good for 175K miles and 10 years… not bad for a $12,000 car ($4-5K less than Vibe / Matrix, comparably equipped)
FWD Sedans = fleet sales.
Don’t all SX4s have navi standard? I don’t know why other car makers don’t do this. Drop all the options, but make navi/cd/mp3/am/fm/Ipod jack/bluetooth/anti lock brakes/traction control/stability control/side air bags/air conditioning/power windows/mirrors/door locks standard on all models, and advertise the piss out of this fact. The cost to build a car with all of that over a base model with roll up windows and no stereo is not much, plus you can saved engineering and other costs by not having to design a freaking window crank, etc. It’s a great niche somebody needs to jump in. “We only sell loaded cars but we charge the price of our competitor’s base model!”
Suzuki is pretty well positioned internationally. Suzuki/Maruti has about 50% market share in India.
American views of Suzuki are remarkably myopic.
I too, though Canadian, overlooked them until we ended up with one. Deserved or not, they have Consumer Reports always beating on them. This, plus some bad choices of models to rebrand, has gained an image of cheap junk, which translates into poor sales and resale values. The SX4 and Grand Vitara also suffer from inferior mileage ratings, which actually seem to be much more normal in real-world numbers.
Unlike many car companies, Suzuki sells practically all over the world. Besides Japan, they have substantial market shares in places like India (where they’re #1), Russia, Australia, the Middle East, Asia and even Europe. I’m not sure of their presence in South America or Africa.
The populace in those places don’t bemoan Suzuki’s lack of dealerships, low profile, Daiwoo rebrands, low resale value, mileage etc. They also don’t read Consumers Reports. Outside North America, Suzuki seems like a totally different company with a totally different relationship to the market. One major element is that their line of smaller vehicles are perfectly suited to most markets’ preferences, and are well positioned for the shift happening in North America.
Their oddly lousy North American performance hides the fact Suzuki recently moved up to world’s 9th largest automaker.
I have a new generation Grand Vitara, and participate in http://www.suzuki-forums.com with people from an amazing range of countries. I repeatedly say that if the new GV had arrived as a Rav4 or Forester, people would have swooned over it. And to not cross-shop the very refined ’09 GV is a definite mistake.
Why does the Trans Siberia Rally pit two Grand Vitaras against a posse of factory-prepared Cayennes?
I have to add that I appreicate this website for differing from others by being refreshingly fair to Suzuki.
fitisgo, I researched the question of who designed the SX4, and other than certain engines in certain markets, apparently it is purely a Suzuki design. (The Subaru Justy was a Suzuki also.)
menno, I may be wrong, but I think Suzuki is #1 in small (Kei) cars in Japan, not car sales overall.
hopefully the Asian Suzuki swift makes it to NA.
In Singapore, you see them everywhere.
very competitive with the fit.
As for the mini:
If you’re looking to get a mini under 20k (ie – base), it’d be worthwhile cross-shopping with the Swift (assuming you’re not anti-5-door).
Hi brandloyalty. Yes, I was totally surprised to understand that Suzuki was #1 in kei cars.
Thing is? Kei cars are what sells in Japan. Ergo, Suzuki literally make the Japanese best-sellers!
Everyone in the world A(except those in the know) would say “it’s got to be so” that – it “must be obvious” – Toyota has GOT to be #1 seller in Japan… right?
Apparently – Wrong!
From what I understood, ONLY North America got rebadged Daewoos sold as Suzukis.
And yes, it’ll apparently be a REAL Suzuki Swift coming state-side (and obviously, Canada too).
Whether they assemble it in Canada at the Ingersoll Ontario plant, or bring them in built-up from Japan (or even India) is something that only Suzuki knows at this point.
I’ll WAG (wild-ass-guess) and say “India” sourced cars assembled in Canada. (Especially given that the Indian plant build a sedan variant of the Swift and sedans are more popular in the US market than Europe, where the Euro-style Swift hatchbacks are built in the ex-Eastern Bloc somewhere… Hungary I believe). Yes, Magyar-Suzuki, that’s right. Hungary.
Suzuki is BIG in India.
Could be the mini campaign but I felt that was like comparing fishnet stockings to lederhosen.
Perhaps the pick up is by people who’ve abandoned SUVs for small car practicality but like the tough image that the SX4 offers over something like the Fit. It doesn’t matter that they’re buying the FWD model, the image is still AWD.