Suzuki Motor USA, LLC (SMO) announced that Suzuki Manufacturing of America Corp. (SMAC) has become a 100% subsidiary of SMO effective, March 1, 2024.
SMAC, founded in 2001 and based in Rome, Georgia, is Suzuki’s All-Terrain Vehicle (ATV) manufacturing facility. For over two decades, all Suzuki adult KingQuad ATVs have been manufactured at this location. Suzuki ATVs are sold in the U.S., Canada and nearly 25 countries worldwide.
SMAC stock is currently owned by Suzuki Motor Corp. (SMC) (20%) and Suzuki Motor of America, Inc. (SMAI) (80%). SMAI, owned by SMC, is the holding company of Suzuki companies operating in the U.S.
SMO officials cited several reasons for the organizational change. First and foremost, by consolidating its ATV sales and production arms, the company looks to strengthen its overall ATV business in the U.S. and globally.
Suzuki is credited with offering the first four-wheel ATV in 1982 with the introduction of the Suzuki LT125. That product created an all-new category of off-road recreational and utility vehicles. Since then, Suzuki has offered a full line of ATV vehicles. Suzuki’s current flagship ATV is the KingQuad 750AXi.
Masami Haga, president of SMO, commented on the new structure. “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.” Haga noted that strengthening the supply chain and purchasing policies for locally sourced parts are objectives of the move as well.
By becoming a group company with integrated production and sales functions, SMO and SMAC leaders expect to improve their responsiveness to the ATV market by more accurately linking production to sales demand. Specifically, SMO looks to improve inventory management for both the company and its dealer body. This will help protect sales margins, flooring costs and ultimately the profitability of both groups. ATV industry sales are generally steady throughout the calendar year with demand typically increasing in the fall months.
Additional benefits of the move are better, more direct communication between SMO and SMAC, resulting in improved staff interaction between the two companies. “We will create a more collaborative environment between the production and sales groups of Suzuki ATVs and foster better connection between the Rome- and Brea-based teams,” said Haga.
Suzuki’s U.S. distribution headquarters are in Brea, California. Suzuki relocated there in 1981 after first coming to the U.S. in 1963.
Haga added that SMAC becoming a subsidiary of SMO sets the stage for new Suzuki ATV offerings and enhancements to existing products in the future.
