Suzuki Manufacturing of America now subsidiary of Suzuki Motor
Suzuki Motor USA, LLC (SMO) announces that, as of March 1, Suzuki Manufacturing of America Corporation, (SMAC) is a 100 percent subsidiary of SMO.
SMAC, founded in 2001 and based in Rome, Georgia, is Suzuki’s ATV manufacturing facility and for over two decades, all Suzuki adult KingQuad ATVs have been manufactured at this location. Suzuki ATVs are sold in the United States, Canada and nearly 25 countries worldwide.
SMAC stock is currently owned by Suzuki Motor Corporation (SMC) (20%) and Suzuki Motor of America, Inc. (SMAI) (80%). SMAI, owned by SMC, is the holding company of Suzuki companies operating in the United States.
SMO officials cited several reasons for the organizational change. First and foremost, by consolidating its ATV sales and production arms, the company looks to strengthen its overall ATV business in the United States and globally.
“One of the primary goals of this change is to expand our commitment to the growth of our entire powersports business,” says Masami Haga, president of SMO. “This evolution will also enable us to build on our relationships with Suzuki dealers and SMAC vendor partners.” Haga noted that strengthening the supply chain and purchasing policies for locally sourced parts are objectives of the move as well.
By becoming a group company with integrated production and sales functions, SMO and SMAC leaders expect to improve their responsiveness to the ATV market by more accurately linking production to sales demand. Specifically, SMO looks to improve inventory management for both the company and its dealer body. This will help protect sales margins, flooring costs and ultimately the profitability of both groups. ATV industry sales are generally steady throughout the calendar year with demand typically increasing in the fall months.
Additional benefits of the move are more direct communication between SMO and SMAC, resulting in improved staff interaction between the two companies. “We will create a more collaborative environment between the production and sales groups of Suzuki ATVs and foster better connection between the Rome- and Brea-based teams,” Haga says.
Suzuki’s United States distribution headquarters are in Brea, California. Suzuki relocated there in 1981 after first coming to the United States in 1963. Suzuki is credited with offering the first four-wheel ATV in 1982 with the introduction of the Suzuki LT125. That product created an all-new category of off-road recreational and utility vehicles. Since then, Suzuki has offered a full line of ATV vehicles and its current flagship ATV is the KingQuad 750AXi.
Haga added that SMAC becoming a subsidiary of SMO sets the stage for new Suzuki ATV offerings and enhancements to existing products in the future.
