The Group has established the New Mid-Term Management Plan SUZUKI NEXT 100 - Strengthening of its management base toward the 100th anniversary of foundation and the next 100 years -, a five-year plan from 2015. The fiscal year marked the second year of the New Mid-Term Management Plan. The Company is making steady progress for achieving the 2019 fiscal year goals of 3,700 billion yen and maintaining an operating income margin of 7%.
Also, due to changes in the environment surrounding automobiles and to increasingly severe market competition, it has become necessary to focus on R&D for environmental performance and safety, and on growth investment with a focus on India. Amidst such conditions, the Company is addressing the following issues in order to achieve the New Mid-Term Management Plan.
In response to the discovery of improper activities that were inconsistent with national regulations with regards to fuel consumption and gas emission testing of the Company’s automobiles, the Company immediately implemented measures which included strengthening the legal education and compliance training, clarifying the responsibility of certification duties, strengthening internal check systems, etc. The entire Company shall continue to work to strengthen compliance.
The Company will make the customers’ safety and security its top priority, develop and produce high-quality products which the customers can use securely, and provide after services. In the future, while accurately ascertaining the quality needs of customers, the Company will maintain a high level of quality awareness in all departments and will continue to make the utmost effort to ensure the safety and security of customers.
＜Products and R&D＞
Today, all corporations are expected to consider the environment. In the automotive industry, there is the need for environmental technology, low fuel consumption technology, etc. The environment surrounding automobiles continues to change. In addition to safety technology, it is now necessary to implement IT, etc. The Group will continue to provide products which are required by customers and which can be used safely and securely.
Domestically, the Group shall work to obtain personnel necessary for achieving production plans. Globally, while strengthening education, installation of safety facilities, etc. necessary for achieving “Safety First” factories, the Group shall work to improve product quality and to construct an optimal global production system.
In the domestic automobile market, the Company succeeded in selling 100,000 standard and small vehicles for the first time ever. In response to strong demand in India, new Gujarat Plant began operation. Furthermore, we are planning the constructing of Gujarat Plant No. 2 and the Engine & Transmission Plant with the aim of beginning operation in 2019. In addition to further strengthening the domestic automobile business and Indian automobile business which are the two pillars of the Group, we will strengthen our automobile business in regions such as ASEAN, Europe, and Pakistan. This will enable us to diversify our income sources and to carry forward the ALL GRIP structure reformation.
While focussing on the 150cc and up, backbone, and sport categories, the Group will strengthen the consistency of the Suzuki brand by ranging the series from large engine displacement motorcycles to small engine displacement motorcycles. In the fiscal year, the Group focussed on reducing fixed expenses and reducing costs. New models including the GSX-R1000 and GSX-R150 were released at the end of the year. Moving forward, in addition to promoting sales of these new models, the Group will achieve a profitable structure through management reforms.
＜Outboard Motor Business＞
In addition to focussing on strengthening sales in the American market, the Group will proceed the development of the Asian market and make “THE ULTIMATE 4-STROKE OUTBOARD” its new brand slogan and aim at creating the world top 4-STROKE outboard motors brand.
＜Environment & Social Activities＞
In the fiscal year, the Company continued to engage in various social service activities for environmental conservation in close cooperation with the local community, as well as to promote our solar energy project in order to suppress global warming and to support disaster affected areas. In addition, the Company is engaged in the research promotion and the scholarship assistance through Suzuki Foundation and Suzuki Education and Culture Foundation. In the future, the Company shall actively address human rights issues which are becoming increasingly prevalent internationally, and shall work to address the domestic issue of reforming work styles.
By balancing between investments for growth and strengthening of its management base, the Group will consistently promote efforts for enhancing corporate value.
Suzuki aims to become a company loved and trusted throughout the world and will continue working on contributions to the environment and the society. We ask for your continued support.
Representative Director and President