Suzuki to shelve plans for large car - Nikkei

TOKYO Mon Jan 5, 2009 8:30am IST

Suzuki Motor Corp Chief Executive Officer Osamu Suzuki speaks during an interview in Hamamatsu, central Japan in this September 19, 2008 file photo. Friday. REUTERS/Yuriko Nakao

Suzuki Motor Corp Chief Executive Officer Osamu Suzuki speaks during an interview in Hamamatsu, central Japan in this September 19, 2008 file photo. Friday.

Credit: Reuters/Yuriko Nakao

Related Topics

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.

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Apple Result

Apple Result

Apple's iPhone sales beat Street but iPad volumes slide  Full Article 

Nadella's Paycheck

Nadella's Paycheck

New Microsoft CEO Nadella's pay tops $80 mln with big stock awards.  Full Article 

Deregulation Impact

Deregulation Impact

Private fuel retailers to dip toe, not dive back, into India  Full Article 

China GDP

China GDP

China posts slowest growth since global crisis, more stimulus expected  Full Article 

Airport Accident

Airport Accident

Total CEO de Margerie killed in Moscow plane accident - airport spokeswoman.  Full Article 

An RBI First

An RBI First

RBI releases minutes of financial stability council's Aug meet  Full Article 

IBM Earnings

IBM Earnings

IBM ditches 2015 operating EPS target, shares slump 7 pct  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage