The famous Japanese Motorcycle and small car manufacturer, Suzuki Motors, shuts its China office located in Shanghai. Shanghai news reported that the company was in real trouble after the joint venture with Changan Auto didn’t seem to fall in place.
The automaker did relocate its office from Beijing to Shanghai earlier this year. The idea of relocation was to establish liaison with businesses and call for new opportunities.
Prior to this, the Beijing office has always remained one of the prominent business hubs of the company and all the decisions used to be taken at Beijing. After the joint venture deal with Changan Auto fell apart, Suzuki was unable to control the costs and overheads of their Shanghai office. Thus, in order to minimize the costs the office was closed voluntarily by the company itself. News has it that Suzuki gradually lost control of the company’s operations which resulted in closing the office.
An official from the office said that the office is closed temporarily and the revocation of the office is being planned. He further added that the revocation will help the company manage the costs and build their existing joint ventures on a solid firm base. The revocation will lay down functional roles to be adapted by Suzuki Motors and Suzuki Investment Co in the future.
In addition, Suzuki Motors just had a replacement in their office in the form of new president. Yamamoto Katurou was made the new president of Suzuki motors replacing Hiroshi Tarumoto. Hiroshi Tarumoto was replaced because of the poor performance of the company. We can only hope that these factors so not destroy their value in the markets across the globe. Suzuki still has lot of nuts to crack before it reaches new heights. At last we would like to wish them best of luck for their near future.
– Atul Sharma
