Suzuki to shelve plans for large car - Nikkei
TOKYO (Reuters) - Suzuki Motor Corp will shelve a plan to launch large-sized cars in 2010 and delay the start of overseas factories amid a sharp deterioration in the global auto market, the Nikkei business daily reported on Monday.
Suzuki and other automakers are under growing pressure to cut output and scrap capital investment plans as auto demand worldwide, including in India where Suzuki commands around half the market, declines sharply.
Suzuki had planned to introduce a big car based on "Kizashi" concept model that would have had an engine of up to 3.6 litres, in a bid to attract customers looking to upgrade from smaller vehicles.
In an interview with Reuters in September, Suzuki CEO Osamu Suzuki had flagged the likelihood for the project's cancellation, saying it made little sense to launch a car into a shrinking segment of the market.
The Nikkei said the firm also plans to postpone plants in Thailand and Russia in 2010.
Suzuki officials were not immediately available for comment.
Shares of Suzuki rose 3.4 percent to 1,270 yen, underperforming a 4.3 percent gain in the Tokyo stock exchange's transport equipment subindex.
- Tweet this
- Share this
- Digg this
- U.S. strikes have slowed Iraq militants but not weakened them - Pentagon
- RBI says all companies must apply 2-step payments for credit cards
- First trucks from aid convoy to Ukraine cross back into Russia
- Indians keep faith with Modi, best hope for economy - poll
- Israeli aircraft bomb Gaza, five Palestinians killed
The Reserve Bank of India said that all transactions involving domestic credit cards must follow rules requiring additional verification, a stance that could impact companies such as Uber Technologies Inc that provide more simple app-based purchases. Full Article
India to hike iron ore royalty, miners may struggle to pass on extra cost. Full Article