In Suzuki’s 100th year, the Chinese market will eventually become a regret

Toyota is one company that applies loom production technology to automobile manufacturing, and the other is Suzuki.

In the era when cars were just becoming popular, Suzuki was well-known in China, and even rivaled Mercedes-Benz. At that time, even children knew about the Alto car, but Daben was associated with money. , luxury, but Alto means cheap and entry-level.

More than ten years ago, there was a popular game "Parking Space" that became popular all over the country. The starting car was a blue second-hand Alto.

But Alto is only a part of Suzuki - for the breadwinner, Suzuki is the worry-free Big Dipper; for life-loving off-road enthusiasts, Suzuki is the exquisite and powerful Jimny; for the obsessed For speedy boys, Suzuki is the Hayabusa with a top speed of 30KM/H.

It’s a pity that after more than ten years, Alto has changed hands many times, Beidou Star has become an electric car, Jimny has a price of 300,000, the trend-chasing boy has a beer belly, and Suzuki also withdrew from China in 2018, just like the air evaporated. , leave gently, without taking away a cloud, and few people will remember and regret it.

However, Suzuki has been silent in recent years except for the fuel efficiency scandal, and has no unique technology or personality worth remembering.

China is such a big market with so many brands and new cars every year, not to mention that consumers like big cars, so it is not a pity to have one less brand that makes small cars.

In the early morning of March 15, 2020, Suzuki quietly celebrated the 100th anniversary of its birth - except in the Chinese market, there was almost no ceremony and no applause.

From weaving to locomotive

The story begins with a loom.

In 1909, Michio Suzuki, who was only 22 years old, gave his mother the first self-made pedal loom, which was 10 times more efficient than ordinary looms. This invention immediately attracted attention Neighbors noticed and were surprised.

Amidst people’s “wow” sounds, he realized that innovative inventions that improve efficiency can make the impossible possible, thereby creating a series of profits and wealth. In October of the same year, Suzuki Motor’s predecessor "Suzuki Loom Manufacturing Co., Ltd." was established in Hamamatsu City, Shizuoka Prefecture.

Suzuki is a smart person. He has learned and been exposed to carpentry skills since he was a child. He developed a large number of looms with different functions in a short period of time and obtained more than 120 utility model patents. The company was established in the early 1930s. Became a leader in the field of looms.

It was only until the mid-to-late 1930s that Suzuki's export orders for looms dropped sharply due to international sanctions for supporting the establishment of Manchukuo and Japan's direct withdrawal from the League of Nations.

Suzuki knew that only the loom business would not last long. With the development of industrial processes, human-powered looms would one day be eliminated. He began to think about the rigid needs of future life, and finally set his sights on internal combustion engines.

In 1936, they bought a British family car representative, the Austin 7. After some dismantling and research, they produced several prototype cars equipped with water-cooled four-cylinder engines in 1939.

Unfortunately, after the outbreak of World War II, Japan believed that the production of small family cars was meaningless and mobilized the whole country to contribute to the front line. Suzuki's factory was said to have not produced military supplies for the Japanese army and continued its old business of drying looms.

▲Austin?7

After Japan surrendered in 1945, Suzuki was one of the few companies that was not affected too much. With the cotton supply from the United States, Suzuki's looms were It spun slowly and slowly.

However, in the early 1950s, due to the collapse of the global cotton market and the labor disputes in 1950, Suzuki fell into operational difficulties. At this time, Suzuki Michio's son-in-law, Shunzo Suzuki, proposed the production of motorcycles.

Japan is in a stage where everything is waiting for improvement. The people have little money and are in urgent need of cheap and easy-to-use transportation. Others have jumped into the motorcycle wave early. Hamamatsu alone has more than 60 motorcycles. Among car companies, Suzuki is a latecomer.

▲Suzuki’s first motorcycle, Power? Free

By the way, Hamamatsu was an aircraft manufacturing base during the war, and there was a local Hamamatsu Technical School (now Shizuoka University The predecessor of the Department of Engineering) has been providing talents to enterprises. It not only gave birth to Suzuki, but also the birthplace of technological streams such as Honda and Yamaha.

Suzuki, which turned around in the field of motorcycles, launched the officially mass-produced Diamond Free in 1953. It actively participated in the Fuji mountain climbing race and the long-distance race from Sapporo to Kagoshima, winning all championships and making Suzuki's name known. No., monthly sales reached 6,000 units, gradually gaining a foothold in the fiercely competitive market.

▲Suzuki Diamond? Free

In order not to fall into a passive situation like before, Suzuki Michio ignored internal opposition and insisted on going the road of automobiles. In 1954, it was renamed "Suzuki Automobile" Co., Ltd."

At that time, Japan had the support of the United States, its economy recovered and developed rapidly, and it began to lay highways across the country. In order to stimulate industrial development, the government targeted people who could not afford big cars and motorcycles that did not cost much. In the absence of money, the "National Car Plan" was formulated in 1949 to stimulate consumer demand for cars.

This is the origin of "K-Car".

However, the initial requirements were unrealistic. The four-stroke engine had a displacement of only 0.15L. After two objections and modifications by car companies, the first version was officially finalized on April 4, 1955.

Then in October, Suzuki released its first sedan, the Suzulight, known as the first K-Car. It was reversely developed from the Lloyd 400 owned by Borgward and priced from 370,000 yen.

Two years later, in 1957, Michio Suzuki retired at the age of 70 after fulfilling his long-cherished wish. He handed the baton to Shunzo Suzuki and returned to his hometown to run the furniture store left by his parents.

▲Suzuki Suzulight

Succession from son-in-law is the corporate culture

In addition to cars and motorcycles, the corporate culture of Suzuki also includes succession from son-in-law and adopted son. The second and third presidents were the first president’s son-in-law, and the fourth president was the second generation’s son-in-law. Originally, the fourth president’s son-in-law was a popular candidate to compete for the seventh president, but he died young and had no choice. As.

However, this is also the tradition of early Japanese family businesses, which prevents the company from being taken over by others and also helps prevent them from being sidelined after retirement. Both Matsushita Konosuke and Toyoda Sakichi have done this.

Before Shunzo Suzuki officially took over Suzuki, he visited the automobile and motorcycle industries in Europe and the United States. He had a longer-term vision. On the one hand, he wanted to modernize his operations, and secondly, he wanted to let the world know about Suzuki.

▲Suzuki Shunzo

In 1958, when he just became president, he decided to hang "S" as Suzuki's logo on its products. This brand image has been used to this day.

The best and fastest way for a nascent Asian car company to gain attention and recognition among its giant peers is to defeat them according to their rules in the top events they hold.

So in 1962, the Suzuki army was sent to participate in one of the most dangerous races in the world - the Isle of Man TT. In the 50cc group, it achieved three consecutive championships from 1962 to 1964, and won the championship in 1966 and 1967. champion.

Rider Mitsuo Ito also became the first Japanese to win the Isle of Man TT. In 1963, he raised the average speed record of the 50cc group to 127KM/H, gradually establishing himself as one of the four kings of Japanese motorcycles. status.

▲Mitsuo Ito

Although Shunzo Suzuki continued his father-in-law's automotive work, he obviously devoted more energy to motorcycles and was called the "soul of Suzuki Motorcycles."

It was also him who continued to expand Suzuki's territory and market - in 1963, he established the American Suzuki subsidiary; in 1965, he got involved in the field of outboard motors, and now they have become Suzuki's three pillars along with cars and motorcycles; in 1967 In 2007, Suzuki established its first overseas motorcycle factory and company in Thailand.

Under the leadership of his son-in-law, the "S" brand entered the world from Asia, but it was his son-in-law Osamu Suzuki who really strengthened Suzuki.

Become the "King of Small Cars"

Ou Suzuki is the one who has been in charge of Suzuki for the longest time except the founder Michio Suzuki. During his reign, he "simply" made a few things Little things.

▲ Osamu Suzuki

In 1979, the second year after Osamu Suzuki took office, he launched the Alto priced at 470,000 yen, which quickly became popular in the market at a low price. 18,000 orders.

The minimalist cost of Alto attracted the attention of car companies, and they became the object of dismantling research by others. At that time, Saturn of the General Group was very surprised by the structure of Alto, which indirectly contributed to the 1986 GM and Suzuki collaboration.

The second-generation Alto has made Suzuki famous in China. In the 1980s, China's industry was just getting started and was preparing to build cars and motorcycles. At that time, China Ordnance Industry Corporation (the predecessor of China Ordnance Industry Group) sought technical help from Toyota, Volkswagen, Honda, and Yamaha, but no one responded.

You must know that in the beginning, those who built cars were Chongqing Chang'an, Jilin Jiangbei, Xiangtan Jiangnan, and Xi'an Qinchuan. These were all military factories. Foreign companies could not get much profit. It is said that Qinchuan built an Alto. The copyright fee is only 30 yuan, and only Suzuki is willing to provide relevant original technology and production equipment.

Chang'an also successfully realized the transition from military to civilian because of "a down payment of 18,000, and the Alto drove home", and began the road of building cars in the foggy city.

This is actually related to Osamu Suzuki himself being passionate about politics, which will be discussed later.

In 1993, the third year that the new K-Car regulations were implemented, since you were not allowed to lengthen or widen, Suzuki cleverly developed the Wagon?R higher and turned it into a regular square box. This is what we know as the "Big Dipper".

The biggest advantage of Beidou Star is its spacious space, especially the head room, the extremely wide field of view, and the large glass with almost no obstruction to the field of view, and it quickly became popular in Asia.

For 38 years from 1973 to 2011, Suzuki has maintained the number one sales volume in the K-Car field and is the well-deserved "King of Small Cars."

Deeply cultivating developing countries

Suzuki Osamu is very clear about its own strengths and weaknesses. Since Suzuki is a small and medium-sized enterprise, instead of fighting hard in developed countries and major car companies in Europe and the United States, A more realistic approach is to rely on the Asian market.

In addition to China’s 1.4 billion people, India also has 1.3 billion people, and Indonesia and the Philippines both have a base of 100 million people.

These developing countries are Suzuki’s world.

Osamu Suzuki once said, "If you have good relations with Asian countries, you will not be afraid of running out of business opportunities." Even if he could not make money, he actively provided technology for the development of China's automobile and motorcycle industry. After all, he was cooperating with military industrial enterprises.

Similarly, in India, in the 1980s, with the support of the government, Suzuki and the state-owned enterprise *** jointly established Maruti Udohuga Company (later renamed Maruti Suzuki) to launch low-cost, The durable Maruti 800 has almost cornered the entire market.

▲Maruti 800

Today’s India is similar to post-war Japan and China in the early stages of reform and opening up. The economy is developing at a low level and people cannot afford good cars. I can only afford a small car.

Suzuki, which is good at using clever power, occupies half of India and is the largest local automobile manufacturer. India has also surpassed Japan to become Suzuki's largest market.

▲The best-selling car in India in 2019, Maruti Dzire

Like Pakistan, the government that needs a national car is in line with Suzuki’s philosophy, and the country supports the establishment of the factory. Although the output is not high, But it ranks first in car sales.

Suzuki Osamu himself was also awarded the highest level of Pakistan Medal and Indian Lotus Medal.

Looking back at the 1980s, Japanese companies all targeted North America and went to overseas to build factories and improve their brand image. Suzuki's choice of India was a risky move. Facts have proved that this move was extremely correct.

It’s just that Suzuki Shu could not have guessed that China was developing so fast. It took 12 years for the Swift generation to be repaired and sold. There was no need to introduce new cars at all, and the brand simply exited.

One of the factors that led to Suzuki's withdrawal was the products that did not meet the market, and the other was that the preferential policies were not in place.

After the rumors of leaving were spread, I went to the 4S store to pick up Swifts. Maybe there would be a big discount for clearing the inventory. The answer was that there was only a discount of 6,000.

The manufacturer does not have a penny sales policy, and the dealers only make a profit from the purchase price of the car. Even if there is a "trade-in", it is only for Vitra, and they have no plans to promote Swift.

Suzuki is also not popular in the United States, which loves big cars. After the two oil crises, General Motors took a liking to Suzuki's technology in building fuel-efficient cars and bought a large amount of its shares.

In 2006, all of them were sold due to deteriorating financial conditions. Suzuki's only "big car", the Kaizashi, used GM's platform technology.

In 2012, as the economy gradually recovered and turbines found a balance between fuel efficiency and power, Suzuki, which did not have large displacement or high horsepower, announced its withdrawal from the United States.

Subsidiary Suzuki Motor Corporation of America applied for bankruptcy protection in the U.S. Federal Court and has since focused only on motorcycles and outboard motor businesses.

Suzuki's constraints

After withdrawing from the world's first and second largest markets, Suzuki does not feel regretful or regretful. With India as a fulcrum, it will then expand into Southeast Asia, the Middle East and even Africa. As long as these countries exist on earth, Suzuki will never go bankrupt in one day.

This has its advantages and disadvantages. The advantage is that it does not have to compete directly with large car companies and is self-sufficient in the field of mini cars. This is also a personality that is different from others.

What's more, others are burning money to develop new energy and autonomous driving. Suzuki's market is not so high-end, and it can make money without technology research and development.

Suzuki is indeed one of the most profitable car companies. In 2018, it even surpassed BMW to become the most profitable car company.

The disadvantage is the entrenched small farmer mentality. Once the environment changes, Suzuki, which only has mini cars, will be unable to survive. Even Osamu Suzuki knows that the company's survival crisis is about 25 to 30 years. cycle.

They have tried to enter different fields before, joining forces with General Motors once and Volkswagen in 2009. Both times they broke up on bad terms and left no representative works.

Hirotaka Ono is most likely to add vitality to Suzuki, a century-old car company. He is the person in charge of overseas markets and promoted the development of Swift and Tianyu SX4, two small cars full of European style. He is also Suzuki Xiu's son-in-law and adopted son was once the designated successor.

Unfortunately, he died of pancreatic cancer in December 2007. The 78-year-old Osamu Suzuki had no choice but to return to the temple and continue to instill the same old ideas. He only built small cars for the poor and did not understand marketing and sales. Market demand cannot keep up with the changes of the times.

Over time, mainstream car companies are pursuing the new four modernizations. Suzuki, which is unwilling to do research and development, is guarding a one-third acre of land and is easily eliminated by the torrent of history. That is to say, India's Tata fails to live up to its expectations, which is why Suzuki is left behind. So arrogant.

Suzuki only knows how to build cheap cars?

No.

Suzuki is not without skills. Just knowing how to deduct costs from small cars has attracted the olive branch of General Motors and Volkswagen. The reputation of Jimny, Super Vitara and Super Wings is obvious to all. But they don’t know that creating a gimmick is real.

For example, in 2018, in order to build momentum for the pure electric family I.D., Volkswagen took the racing car I.D.?R around and created Goodwood, Nurburgring, Pikes Peak Mountain Race, and Zhangjiajie Tianmen Mountain. electric vehicle speed record.

Suzuki used a modified Tianyu SX4 (it’s just a shell and has nothing to do with the production car) to participate in the Pikes Peak Mountain Climb. The Suzuki team manager and driver Nobuhiro Tajima from 2006 to 2011 He won the championship for 6 consecutive years and was known as "Monster Tajima".

This race started in 1916. The average altitude of three to four thousand meters is the highest among all races. The low oxygen content not only tests the drivers, but also the engine may lose 30% of its power. Power, lean combustion can easily cause the engine to overheat.

There are 156 curves along the way, with almost no guardrails. Once out of control, it will be an abyss with a huge drop. Before 2012, up to 75% of the gravel road was unpaved, and then it was completely paved with asphalt.

After 1995, in 2011, Tajima drove a Suzuki and broke the 10-minute mark for the first time, but there was no publicity. This was in line with the tone of Suzuki and Suzuki Shu, and the cost of the small car was deducted. After a long time of development, even marketing has become fussy.

Maybe a small and medium-sized enterprise can easily lose its different voices under the long-term control of one person. Only by waiting for destruction from external forces can the current situation be changed.

The next century

In 2015, Suzuki Osamu resigned as the seventh president and became chairman of the board of directors and CEO. His eldest son, Toshihiro Suzuki, took over Suzuki. Suzuki Toshihiro said that he could not break the company's habits by himself.

In 2018, Suzuki was exposed for falsifying fuel consumption, and Osamu Suzuki apologized; in April 2019, the headquarters' Hamamatsu factory had illegal operations during vehicle inspections, causing certain hidden dangers to safety, and Suzuki announced a recall of 2 million vehicles. car.

At the shareholders’ meeting two months later, the approval rate for Osamu Suzuki and Toshihiro Suzuki’s re-election hit a 10-year low, falling by nearly 30 percentage points.

Perhaps a huge change is brewing within Suzuki that outsiders cannot see.

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This article comes from the author of Autohome Chejiahao and does not represent the views and positions of Autohome.