Recent history of American auto reveals that two auto companies, namely Suzuki and Hyundai, entered the JUMBO American Auto market around 1985. Suzuki-America has yet to make profit from American operation in 25 years and probably in 2010 they lost to the tune of 100 Million $ in USA due to extra expenditure associated with introduction and advertisement of Kizashi. However, lucky for them, Indian Maruti Suzuki is booming without leaps and bounds – the most profitable arm of Suzuki. In 2010, Suzuki Japan increased the parent company’s royalty from 3.5% to 5.35% from Maruti, which kept global Suzuki in BLACK but Maruti-Suzuki’s net profit declined in India in spite of substantial increase in sale #. America is the sizable source of profit for Hyundai and they have a big manufacturing facility here. To get a feel see a comparison Lexus LS460L, Bentley Mulsanne, Lexes LS, Audi A6 and BMW 5 series, Lexus GS 350, Lexus RX 350.
IMHO, the main difference in active R&D to produce quality and competitive product. However, Suzuki is working hard to catch up and introduced Kizashi recently.
 In reckless auto accident, it is not important who is RIGHT but who is LEFT.
|
