Suzuki is known as one of the biggest motorcycle and powersports brands in the world. But did you know that its ATV sales and production businesses were two separate entities?
In the case of Suzuki, Suzuki Manufacturing of America Corp. (SMAC) handles the production side of the ATV business, while Suzuki Motor Corp (SMC) handles the sales side. SMAC stock is owned by Suzuki Motor Corp, which holds 20 percent, and Suzuki Motor of America Inc (SMAI), which holds 80 percent. ATVs manufactured by SMAC are sold in the US and Canada, and 25 other countries all over the world.
Now if that all sounds pretty complicated, that’s because it is.
And so, Suzuki has simplified things by announcing SMAC as a 100-percent subsidiary of Suzuki Motor USA, LLC (SMO) effective March 1, 2024. So, why would Suzuki decide to merge its sales and production arms into a single business unit?
Well, for starters, it’s all about market responsiveness. Today’s powersports market is highly competitive and has no shortage of new players looking to take the crown from established brands like Suzuki. And so integrating production and sales functions will ultimately lead to quicker go-to-market and product development. Inventory management will also be boosted for both the company and its dealer network. To top it all off, fewer steps in business processes lower costs and increase efficiency.
Commenting on the new organizational structure, Masai Haga, the President of Suzuki Motor USA, LLC, explained, “One of the primary goals of this change is to expand our commitment to the growth of our entire powersports business. This evolution will also enable us to build on our relationships with Suzuki dealers and SMAC vendor partners.”
Seeing big names in the industry make drastic changes to the way they operate may seem scary at first. But it’s important to realize that the powersports industry is bustling with innovation. Now more than ever, people are eager to explore the great outdoors, and the influx of all sorts of new innovations from both new and established brands is living proof of this.
It’s safe to assume that Suzuki has big plans for the future when it comes to its ATV offerings. SMAC becoming a wholly owned subsidiary of SMO undoubtedly sets the stage for new and exciting Suzuki ATV offerings.
