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SUZUKI BIKE LOSS GROWS

Full-year financial results to 31 March, 2016, for Suzuki Motor Corporation reveal a further decline in turnover and increasing losses for its global motorcycle and ATV business.

Consolidated revenue from bikes dropped by 6.6% to £1.485bn. The company’s annual operating loss from the sector deteriorated from a relatively modest £4.3m in the previous fiscal year to £64.8m in the red.

Total bike sales volume was 13.4% down at 1.032 million units. Suzuki cited declines in big Asian markets — especially Indonesia — as primarily responsible with an overall 16.2% fall to 698,000 units. Other emerging regions, mainly Latin America, dropped by 8.9% to 185,000 units.

As for the higher-margin developed world, Japan’s domestic market was flat on 62,000 units. North America decreased by 17.4% to 38,000 units. Only Europe made progress, rising by 4.4% to 47,000 units.

Successful sales contributions were noted from the new GSX-S1000 in Europe and India’s 155cc Gixxer street sports model.

A statement promising to do better next year said: “The group will strive to eliminate its loss-making structure through selection and concentration, and develop product that clearly defines the characteristics of Suzuki. The group will be focusing particularly on the 150cc and up, backbone and sport categories.”

 

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