Global News

4 September 2018

Transfer of all equity in Changan Suzuki held by Suzuki to Changan Automobile

Suzuki Motor Corporation (Suzuki) has agreed to transfer all equity in Chongqing Changan Suzuki Automobile Co., Ltd. (Changan Suzuki), an entity accounted for using equity method in China, held by Suzuki (50%) to Chongqing Changan Automobile Co., Ltd. (Changan Automobile).

Suzuki and Changan Automobile have discussed toward future development of Changan Suzuki and consequently agreed on the following decisions.

  • - Suzuki will transfer all equity held in Changan Suzuki to Changan Automobile, and the management of Changan Suzuki will be continued as 100% subsidiary of Changan Automobile.
  • - Meanwhile, the president sent from Suzuki will resign.
  • - However, Suzuki will continue licensing of production and sales of Suzuki models to Changan Suzuki.

The transfer of equity will complete upon completion of legal proceedings in China.

The transfer has almost no influence on Suzuki’s financial performances for this fiscal year.

Comment by Suzuki’s Chairman Osamu Suzuki

“Approximately 25 years ago, we launched the Alto in China, and since then we have made efforts in cultivating the Chinese market. However, due partly to shifting of Chinese market to larger vehicles, we have decided to transfer all equity to Changan Automobile.”