Suzuki cuts U.S. work force 8%
Kathy Jackson
Automotive News
LOS ANGELES -- American Suzuki Motor Corp. has reduced its U.S. work force by about 8 percent at company headquarters in suburban Los Angeles and in the regions.
Spokesman Jeff Holland says 20 of the 600 U.S. employees took buyouts or early retirements. An additional 30 jobs were eliminated after the company did not meet its voluntary-buyout numbers.
In a March 28 letter to company employees, Chairman Rick Suzuki said the U.S. jobs would be eliminated because of sliding sales and operating losses. Suzuki also said he would step down, but he still holds his position.
It remains unclear when or if Suzuki still plans to step down from the post.
Among those dismissed on June 30 was Cam Smith Arnold, vice president of customer relations at American Suzuki's automotive division. Arnold had been with the company since 1990. Her job was eliminated, Holland said. Another vice president, Tom Lynch, quit in June, Holland said.
Lynch joined the company in October 2007 in the newly created position of vice president of dealer development. Holland said Gary Akin, vice president of sales, will take over Lynch's duties. Akin's new title is vice president of sales and market representation.
The exits of Arnold and Lynch leave the automotive division with a five-member executive team: Rick Suzuki; Mark Harano, president; Gary Akin; Gene Brown, vice president of marketing and public relations; and Chuck Halper, vice president of service.
"Although no business welcomes the responsibility of labor reductions, this decision reflects today's economic realities that are impacting not just American Suzuki but the entire automotive industry," Holland said. "Despite the short-term decisions to address the current climate, however, American Suzuki's commitment to the U.S. market is strong, unwavering and ongoing."
Rick Suzuki said he was stepping down because the U.S. unit fell far short of reaching its sales goals of 200,000 autos and 300,000 motorcycles and ATVs by 2007.
"The five-year plan ended far from its goals, with sales of only 100,000 automobiles and 190,000 motorcycles/ATVs," Suzuki wrote. "With the recession in the picture, (American Suzuki) must anticipate further sales declines."
Through June 30, Suzuki's sales totaled 56,248, down 2.2 percent from a year ago. June sales were down 5.2 percent from June 2007.
For the 2009 model year, Suzuki will have just four nameplates -- the small SX4 sedan and hatchback, the small Grand Vitara SUV, the mid-sized XL7 SUV and the Equator pickup. The small Forenza sedan and Reno hatchback go away after 2008.
