Suzuki Motor Corporation (Suzuki) has completed transfer of all equity in Jiangxi Changhe Suzuki Automobile Co., Ltd. (Changhe Suzuki), an entity accounted for using equity method in China, held by the Suzuki Group (46%) to Changhe Automobile.
Changhe Suzuki was established in August 1994 as a joint venture company between Changhe Aero Industry Co., Okaya & Co., Ltd. (Okaya), and Suzuki. The company had been producing and selling Suzuki-branded automobiles since June 1995.
The management situation of Changhe Suzuki had been in crucial condition since the company had not been able to achieve the sales target in recent years.
The Suzuki Group and Okaya have agreed with Changhe Automobile to transfer all of their equity in Changhe Suzuki to Changhe Automobile, and the necessary proceedings to the government department in charge have completed.
The transfer does not have any influence on Suzuki’s financial performances for this fiscal year.