New Zealand Industry Plan wins battle

Press, 9 December 1988, Page 38

New Zealand Industry Plan wins battle

BEHIND THE WHEEL

Peter Greenslade

Following closely on assurances that Suzuki New Zealand, Ltd, did not intend to cease its assembly operation in Wanganui, it must have come as something of a surprise when

the managing director, Kas Adachi, announced a decision to mothball the plant at the end of this year. Suzuki New Zealand was assembling only four

vehicles a day and that, obviously, was insufficient to keep the plant economically viable. The closing will cost 16 people their jobs. By the end of October,

Suzuki dealers had sold 201 Altos, 211 Swifts, 119 Supervans, 178 Samurais and two Vitaras. The Swifts were assembled under contract by Trentham’s General Motors and the Vitaras were imported completely built up, so the Wanganui plant assembled 498 vehicles which, even by New Zealand standards, is not a lot.

All the same, sales of all Suzuki vehicles continue to show increases. Last year’s exports from Japan increased 16 per cent over 1986, with sales of 546,691.

At the same time, Japanese domestic sales totalled 506,489, marking the first year in which Suzuki had exceeded 500,000. Total Suzuki sales topped a million units for the first time.

In fact, last year Suzuki captured 29.3 per cent of the mini market in Japan, and also 29.3 per cent of all commercial vehicle sales, turning out to be No. 1 in those segments. Suzuki started out by producing pint-sized cars which, since the British Leyland Mini disappeared from dealers’ showrooms, have not proved popular in New Zealand.

Admittedly, the Suzuki has grown into the 1324 cu cm Swift, the four-wheel-drive Samurai and, more recently, the 1500 cu cm Vitara, but the old threecylinder Alto image is apparently still strong and overshadows the larger vehicles.

Maybe it’s because of that image that Suzuki New Zealand is at least temporarily abandoning local assembly, although it is more likely that, like the Daihatsu, being handled by the Turners and Growers Group and now imported completely built up from Japan, Suzuki has come to realise that New Zealand’s Motor Industry Plan has won yet another battle in the continuing war. It seems that you’ve just got to be big to succeed.

Having got into Auckland Harbour, without anyone ' who counted knowing about it until after the big bang, the French are now waxing lyrical about the Chinese car market.

It has the potential for large sales and is an area that has remained largely untapped, according to B.

J. Montel, Automobiles Peugeot’s overseas operations director.

Mr Montel says there are relatively few cars in China, where Peugeot is already, and is working hard to get ahead.

Bear in mind that Peugeot has built more than 500,000 vehicles in Nigeria in the last 10 years and it is estimated that seven cars in 10 are It seems that you’ve just got to think big to succeed. Maybe the French are on to something much bigger than the Rainbow Warrior.