Hate to be the bearer of not great news.
While the dealer may have his own reasons for getting out, American Suzuki isn't going anywhere just yet. Working in advertising, I'm privy to some of the intentions of our advertisers. Last week Suzuki authorized a big purchase in TV commercial inventory for the Kizzy specifically. I can't give any more details other than tell you that it's the most I've seen them spend in 5 yrs not counting they're big ticket Superbowl ad. It is possible that they just want to clear the existing Kizzy inventory and be done with it but that scenario is not likely. Not for the amount of money they just spent. Anyway, that's my 2 cents.
'12 Kizzy GTS - Azure Gray
'10 Jeep Liberty
'10 Jeep Liberty
I spoke with my dealer (owner) today about some of the stuff flying around the net about Suzuki. We talked for about 20 minutes and this is his feedback:
This dealer (Winnpeg, Manitoba, Canada) recently purchasing a majority share in the dealership. He came out of the corporate offices of Ford Canada and knows what is going on in the auto business. He has invested a large amount of his own money.
- Dealers closing down - This dealer is aware of a number of dealers closing shop, especially in the US. The reason (from what he knows) is that Suzuki is downsizing the number of locations in North America, especially those that are also running used car lots and carry very light Suzuki inventory. They are being offered an option to exit by Suzuki corp in an effort to tighten up the number of locations and focus on dealer/owners who are serious about featuring and supporting the Suzuki brand.
Based on Suzuki's findings, they were seeing a large number of dealers who are really only used cars lots that wanted a brand behind their dealership. Lots of used cars and a very limited assortment of Suzuki's and a minimal focus on the brand.
- Advertising - Ad $'s are now being directed to the dealers to spend locally as they see fit. National advertising, including shows, is being cut back. They feel National ads are a waste of money for this company. Suzuki is a limited brand in limited locations - advertising nationally is over kill. Why run national ads when you do not have dealerships in half the locations the ad may be running? They figure the money will be better spent by local dealers who are fully behind the brand, have cars on their lots, and are prepared to keep inventory on hand. These dealers will be asked to focus their ad's on new customers looking for a high quality Japanese brand that is a little different than the competition.
After my chat with this gentleman, I feel much more confident in the brand. I also feel they are not going anywhere just yet. This dealer dropped a pile of his own money into this company. He didn't come across as a dummy - I think he knows what he's doing and likes the direction and approach Suzuki is taking. I'll take him for his word.
This dealer (Winnpeg, Manitoba, Canada) recently purchasing a majority share in the dealership. He came out of the corporate offices of Ford Canada and knows what is going on in the auto business. He has invested a large amount of his own money.
- Dealers closing down - This dealer is aware of a number of dealers closing shop, especially in the US. The reason (from what he knows) is that Suzuki is downsizing the number of locations in North America, especially those that are also running used car lots and carry very light Suzuki inventory. They are being offered an option to exit by Suzuki corp in an effort to tighten up the number of locations and focus on dealer/owners who are serious about featuring and supporting the Suzuki brand.
Based on Suzuki's findings, they were seeing a large number of dealers who are really only used cars lots that wanted a brand behind their dealership. Lots of used cars and a very limited assortment of Suzuki's and a minimal focus on the brand.
- Advertising - Ad $'s are now being directed to the dealers to spend locally as they see fit. National advertising, including shows, is being cut back. They feel National ads are a waste of money for this company. Suzuki is a limited brand in limited locations - advertising nationally is over kill. Why run national ads when you do not have dealerships in half the locations the ad may be running? They figure the money will be better spent by local dealers who are fully behind the brand, have cars on their lots, and are prepared to keep inventory on hand. These dealers will be asked to focus their ad's on new customers looking for a high quality Japanese brand that is a little different than the competition.
After my chat with this gentleman, I feel much more confident in the brand. I also feel they are not going anywhere just yet. This dealer dropped a pile of his own money into this company. He didn't come across as a dummy - I think he knows what he's doing and likes the direction and approach Suzuki is taking. I'll take him for his word.
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Northernstar
- Posts: 590
- Joined: Tue Jan 18, 2011 9:49 am
- Location: Surrey Canada
I dont think there are a lot of dealers closing down in Canada. I live in Edmonton and there are 2 dealers in the city and I think they are doing pretty good. advertisement wise, I haven't seen one on TV but that's prob cus I am watching the wrong channels lol. I do however see quite a lot of newspaper advertisement though.
MadBlack - thanks for your update, it just reaffirms what I've been stating here and over on the ClubSX4 site. They're not going anywhere, just focusing and spending their dollars wisely as they have done since their autos were introduced here in the U.S. Dealers don't perform or stand behind the brand, why would corporate want to keep them?
Ron
2010 Kizashi GTS, CVT, iAWD (3/10 build date)
2011 SX4 Premium Hatch, CVT, iAWD (12/10 build date)
2018 Mazda CX-5 iAWD Touring
2014 Wrangler JKUW (GONE, traded
)
1991 Samurai, 5-Speed, EFI, Soft-Top (
sold)
2010 Kizashi GTS, CVT, iAWD (3/10 build date)
2011 SX4 Premium Hatch, CVT, iAWD (12/10 build date)
2018 Mazda CX-5 iAWD Touring
2014 Wrangler JKUW (GONE, traded
) 1991 Samurai, 5-Speed, EFI, Soft-Top (
sold)Honestly, I am sure they won't go anywhere...in Canada. Brands don't survive in the U.S. by cutting the amount of dealers and saying that they want to support people "who want something different." If they want to lose even more customers, that's the way to do it. They need to drastically redesign the SX-4, and Grand Vitara - not because they are bad, but because they are outdated. People like new, fresh stuff, and both of these vehicles have looked exhactly the same for almost 6 years or more. The fox body mustang was a great car and stayed around with fairly minor changes from 1979 until 1993. It would never last that long nowadays.
They need to turbo the Kizashi and offer AWD with a manual tranny. They need to come out with the Swift and all of its variants in the U.S., and they need to have one or two more cars like a sport coupe and a larger wagon of some type. All of their vehicles should have AWD and all need to be attractive looking like the Kizashi. This would pull people away from Subaru and give them another All-AWD brand to choose from. I almost think that leaving the U.S., redesigning all of their vehicles, and then coming back a few years later like Fiat is doing might be the way to go for them.
I am just pissed because they simply do not listen to what faithful customers are telling them. They could have been every bit as successful as Hyundai Kia, but chose not to take any chances financially, and it basically ruined them in this country. I have never heard of a brand of cars being "regional." That is idiotic.
I LOVE these cars, but more people need to feel the same way. I think we all want to believe that they are staying because they make excellent cars, but I think it's wishful thinking at this point. It's too bad because I would have been the first to buy a brand new Swift Sport if they released it here.
They need to turbo the Kizashi and offer AWD with a manual tranny. They need to come out with the Swift and all of its variants in the U.S., and they need to have one or two more cars like a sport coupe and a larger wagon of some type. All of their vehicles should have AWD and all need to be attractive looking like the Kizashi. This would pull people away from Subaru and give them another All-AWD brand to choose from. I almost think that leaving the U.S., redesigning all of their vehicles, and then coming back a few years later like Fiat is doing might be the way to go for them.
I am just pissed because they simply do not listen to what faithful customers are telling them. They could have been every bit as successful as Hyundai Kia, but chose not to take any chances financially, and it basically ruined them in this country. I have never heard of a brand of cars being "regional." That is idiotic.
I LOVE these cars, but more people need to feel the same way. I think we all want to believe that they are staying because they make excellent cars, but I think it's wishful thinking at this point. It's too bad because I would have been the first to buy a brand new Swift Sport if they released it here.
They're cutting "certain" dealers as I pointed out - those that are running used car lots and calling themselves Suzuki dealers. You may not agree with their marketing strategy but keep in mind, they will not turn this into a Honda over night. They built the Kizashi which I think we all agree is a good start - now they need to focus on what they have as a dealer network and start over - that begins with a clean up.
I don't know what they are planning in the way of new, improved vehicles or models - but there is really no point if the dealers are not behind the brand. So they go out and pour piles of cash into redesigned vehicles and then expect them to sell with this group of dealers? Most might have 6 Suzuki's on the lot - along with a few hundred used cars. The committed dealers are now expected to manage their own marketing - at a local level. I'm seeing more of it here and I believe it makes sense with their limited national exposure (dealer wise).
The easy answer is add more dealers, build or improve on models, add all the trim packages that will make everyone happy, spend millions on national ad campaigns, load up the lots with more cars .... but where does the cash come from?
I'd like to see more locations but, how do you think that will happen as quickly as you might like to see it? They could expand the used car lots that are out there now or they could shut the bad ones down and begin rebuilding - that is not going to happen over night. Regardless of the mistakes these guys have made up until now, there is really no point in dwelling on where they went wrong. Considering these guys were bleeding profits up until now, it only makes sense to cut away the fat and rebuild.
I don't know what they are planning in the way of new, improved vehicles or models - but there is really no point if the dealers are not behind the brand. So they go out and pour piles of cash into redesigned vehicles and then expect them to sell with this group of dealers? Most might have 6 Suzuki's on the lot - along with a few hundred used cars. The committed dealers are now expected to manage their own marketing - at a local level. I'm seeing more of it here and I believe it makes sense with their limited national exposure (dealer wise).
The easy answer is add more dealers, build or improve on models, add all the trim packages that will make everyone happy, spend millions on national ad campaigns, load up the lots with more cars .... but where does the cash come from?
I'd like to see more locations but, how do you think that will happen as quickly as you might like to see it? They could expand the used car lots that are out there now or they could shut the bad ones down and begin rebuilding - that is not going to happen over night. Regardless of the mistakes these guys have made up until now, there is really no point in dwelling on where they went wrong. Considering these guys were bleeding profits up until now, it only makes sense to cut away the fat and rebuild.
In 2004 Suzuki had about 550 dealers, the list grew to over 700 in 2006. Currently that number stands at just about 150.
It is difficult not to notice trends.
I have to believe that Suzuki is still profitable in US, the question however remains that if much more profit can be made somewhere else in the world with the money that they put in US.
With Kizashi, the company proved that it can design capable cars and incorporate new technologies and innovations in its design. They desperately need to do that across the line, that's if they want to be able to grab market share from companies like Subaru, Ford, Honda, Toyota, Nissan and VW.
With its VW partnership limbo, the hope to rely to VW dealer network to expand is gone too.
It is difficult not to notice trends.
I have to believe that Suzuki is still profitable in US, the question however remains that if much more profit can be made somewhere else in the world with the money that they put in US.
With Kizashi, the company proved that it can design capable cars and incorporate new technologies and innovations in its design. They desperately need to do that across the line, that's if they want to be able to grab market share from companies like Subaru, Ford, Honda, Toyota, Nissan and VW.
With its VW partnership limbo, the hope to rely to VW dealer network to expand is gone too.
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chazyouwin
- Posts: 402
- Joined: Thu Dec 09, 2010 9:57 pm
- Location: Northern New Jersey USA
Seneg - where do your dealer numbers come from? Even the chart in the alarmist article which started this thread does not show dealer numbers more than 550 in any year. And the same article shows approximately 240 dealers in 2012.
2010 Kizashi SLS FWD Gray; 2013 Grand Vitara 4wd red; 2012 SX4 blue; 2021 Mitsubishi Outlander PHEV black
Previous: 2002 XL-7 Limited (2); 1992 Accord; '91 Volvo; '85 Toyota; '84 Celica; '73 Mercedes.
Previous: 2002 XL-7 Limited (2); 1992 Accord; '91 Volvo; '85 Toyota; '84 Celica; '73 Mercedes.
ok..this is pretty bad news indeed. I am actually also located in the new york metro area as well, and ironically, I just visited the suzuki dealership at long island city yesterday. If you have read my most recent posts, I have actually been thinking about buying a Kizashi. Seems like I shouldnt get a kizashi afterall... 
I really like this car, but the lack of dealerships may be a great inconvenience in the future.
I really like this car, but the lack of dealerships may be a great inconvenience in the future.