Monday, August 17, 2009

Suzuki cutting production to 1.5 weeks a month in Rome

Suzuki cuts domestic production as demand drops; international sales 'constant': Suzuki Manufacturing of America Corp. is idling production at the Rome campus for two-and-a-half weeks each month, September through December, because of "poor domestic demand and the need to clear out old inventory from the U.S. dealerships before shipping them more new product," says Alan Horne, global sales supervisor. 

"We will continue to produce ATVs for our customers outside the USA in the weeks that we are operating from September 2009 to December 2009," Horne says. As of Monday, the company employs 190 people.

Recent forecasts hint at a recovery beginning this calendar year "and we will adapt the shutdown plan to actual economic conditions, picking up production again sooner that December 2009 if the stock situation in our US dealerships warrants it," says Horne. And while international demand is down year over year, it "remains constant" so production will continue through 2009, he says.

In 2008, Horne says, half of Suzuki's production capacity went to international markets and half to the United States. That was the plan for 2009 as well until the domestic market stalled. Suzuki serves 40 international markets led by Canada, Australia and New Zealand.

The Rome plant went into production in May 2002 and has produced nearly 300,000 vehicles since then. Suzuki has 30 assembly plants worldwide but only Rome builds the King Quad sports utility ATV. For more, click www.suzuki.com

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