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.