2004 DETROIT AUTO SHOW: Suzuki plans more vehicles, more dealerships
By Arlena Sawyers
Automotive News / January 06, 2004
American Suzuki Motor Corp. this year plans to introduce a hatchback and increase its dealership network - significant steps in reaching its goal of tripling sales by 2007.
The automaker also will launch a $20 million ad campaign for its new Forenza compact sedan this month with commercials using the theme song "Movin' On Up" from the 1970s-1980s sitcom "The Jeffersons."
Suzuki revealed the Reno five-door hatchback at the show on Monday. It will be priced $13,000 to $15,000.
Production is scheduled to start in July. The vehicle will go on sale in September or October.
The Reno is the third of nine vehicles Suzuki plans to introduce to boost its sales to 100,000 in 2004 and 200,000 by 2007. Suzuki sold 58,438 vehicles in the United States in 2003.
Suzuki introduced the mid-sized Verona sedan in September 2003 and Forenza sedan in December 2003. Another vehicle will follow on the heels of the Reno, a Suzuki spokeswoman said.
The Verona and Forenza are rebadged models built by GM Daewoo Auto & Technology Co.
Suzuki also offers the XL-7, Grand Vitara and Vitara V-6 SUVs, Aerio SX wagon and Aerio sedan.
Tom Carney, Suzuki director of automotive marketing, says the automaker expects to sell 100,000 vehicles in 2004 and 10,000 Renos in its first full calendar year in 2005.
"More dealers, more products - these vehicles will be about 50,000 to 60,000 sales, plus we're selling 50,000 cars to begin with, and we also have the SUVs," Carney says. "If we don't get to 100,000 (in 2004), there's something wrong.
"We're in the mainstream now that we've got a full line of cars. We're not in just two tiny segments."
Carney says Suzuki will give the Forenza a boost this month with TV spots that begin on Jan. 20. He says the commercial features actors in their 30s "high-fiving" one another to the catchy theme music from "The Jeffersons."
"To get a car like this for $13,000 to $14,000 with all the equipment, they're moving on up in that segment, in that class," Carney says.
Suzuki dealers sold about 600 Forenzas in December without any advertising, he says.
In 2003, Suzuki said it would boost ad spending from $60 million in 2003 to $100 million in 2004. Carney says each major metro market will see 55 percent to 150 percent more TV advertising in 2004.
The company also plans to increase its dealership network from 488 stores to 600 by 2005. Carney says Suzuki will add dealerships in its top 25 markets.
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