Suzuki Sells More Bikes in 2010, But Made Less Money

02/07/2011 @ 5:19 pm, by Jensen Beeler7 COMMENTS

Suzuki Sells More Bikes in 2010, But Made Less Money Suzuki 2010 sales 635x452

Here’s one to wrap your mind around: Suzuki sold more motorcycles in the last 9 months of 2010 than it did in same time period in 2009, but somehow managed to make less money on those sales. Selling 975,000 units in Q2-Q4 of 2010, Suzuki scored an encouraging 6.1% sales increase, but the Japanese company made only ¥186.3 billion in revenue ($2.26 billion USD), which was down 4.6% from the ¥195.2 billion ($2.37 billion USD) made in the same timeframe in 2009. Puzzling, no?

Suzuki attributes its bump in sales primarily to the Asian markets, where sales in India, Indonesia and Pakistan are still particularly strong. Unsurprisingly, sales for Suzuki were down in the North American, European, and Japanese markets, which coincidentally is also where bikes with higher profit margins are sold.

Operating at a loss of ¥7.1 billion yen ($85.7 million USD) through the second to fourth quarters of 2010, Suzuki Motorcycles was the only division in the company to lose money in 2010. Rumors of detailed instructions and a Samurai sword being left in the motorcycle division’s conference room appear to have been completely fabricated by a blog for dramatic effect.

Source: Motorcycle.com

Comment:

  1. MTGR says:

    I have worked there and I doubt the blog rumors are that far from the truth. The big change in profit is likely due to huge discounts and rebates to customers and dealers in order to get product moving off the floor.

  2. aptimus prime says:

    Puzzling? Guys, look at the GBP-Yen, Dollar-Yen, and Euro-Yen exchange rates since 2008.

    The Japanese motorcycle industry will continue to go through hell until they build all of their bikes in the US.

  3. jz says:

    It’s called margin compression and with the way the Central banks are buying up sovereign debt (printing), raw materials (commodities ) will continue to rocket in 2011. If your a producer, costs are going way up. Now, try to sell your wares to a consumer who’s holding tight to his wallet. Profits are suffering

  4. Shaitan says:

    It’s the same in most business. We all are working more for less, so suck it up Suzuki.

  5. Not that skipping the importation of any MY2010 bikes would put a dent in consumer confidence, mind you . . . . On the auto side, Suzi is closing more than 60 dealers across these United States, and their MotoGP effort . . . . . .Mr. Suzuki himself is older than Al Davis and makes Akio Toyoda look like an astrophysicist, so I’m just not real confident about them.

    And I’ve always wondered . . . . is ther some secret handshake among the Japanese that the same companies who build ferocious motorcycles MUST build utterly boring cars? How do you go from B-King and Hayabusa to Grand Vitara and Jimnys?

    So didya hear the one about discontinuing the SV650 and morphing it into something called a ‘Gladius’? Maybe a performance version (NOT retuned for midrange torque!) could be called a “G-King”, or more likely “G-Spot”.

  6. RT @Asphalt_Rubber: Suzuki Sells More Bikes in 2010, But Made Less Money – http://aspha.lt/9r #motorcycle

  7. SBPilot says:

    The terrible American sales is a bit surprising. I guess winning on Sunday doesn’t sell on Monday no more. AMA Superbike is full of GSX-R’s, and they have been winning for a long time. Honda doesn’t even field bikes in AMA due to some agreement issues yet they have profits. How does Suzuki have such poor American sales? I guess we’re all so global now, seeing Suzuki suck at MotoGP and pull out of WSBK factory effort hurts the sales too.

    Yamaha also has weak sales, closing plants and all…oh oh I see it now…Honda buys out Suzuki…Toyota buys out Yamaha (since Toyota already contracts work to Yamaha to build engines), or maybe some foreign corporation like a Chinese car company or some Indian billionaire.