The Japanese brand is under pressure to fight back against the aggressive drive for sales from its competitors, particularly Kia and Hyundai. Now each new model is priced close to the target transaction price in order to protect residual values and end the culture of large discounts at showrooms.
Suzuki’s network, currently achieving a 4.2% typical profit margin, has welcomed two new European models this year: the Swift supermini and the Grand Vitara. Next year, Suzuki will market a SUV crossover vehicle, known as the SX4. That will be followed by a D-segment car in 2007.
“Our first customer is the dealer,” says David Seward, Suzuki GB sales and marketing director. “Our franchise is very profitable and we need to keep it that way.”