Kawasaki / Suzuki model sharing is over..
Posted: Mon May 30, 2005 5:13 pm
Kawasaki-Suzuki Part Ways
27/05/05
From Kawasaki Australia
Kawasaki-Suzuki Alliance Enters New Phase
The “alliance” announced in August, 2001 between Kawasaki Heavy Industries, Ltd., (KHI) and Suzuki Motor Corporation (SMC) will enter a new phase, focusing on potential exchanges of indirect resources, such as research and development, human resources and components, rather than on direct OEM product exchanges.
Following a successful three year arrangement which allowed sharing of parts sourcing, platform production of OEM units, and joint development of new products, both companies have considered factors related to sales volume, profitability, customer reaction, influence on brand image, and competitiveness of each OEM product. The two brands have jointly agreed that more focused, independent development activity will serve to further enhance their respective brand identities with their loyal customer bases.
This modification to the alliance relationship will mean that OEM product sales will be discontinued, beginning with the KLX400R in 2006; and the following models will not be available from Kawasaki, effective with the 2007 model year:
KLX125, KLX125-II, KDX50, KFX80 and KFX50.
KHI product development has been accelerated during the initial alliance phase, as more resources were able to be placed against brand-specific product needs. The company will continue to develop new models to replace some of the above. Meanwhile, the KFX400 will still be produced for model year 2007.
Achieving significant savings in development resources was a primary goal of the relationship with SMC, and having done that, KHI is in a stronger position for investment spending against future product introductions. The market environment is such that expectations for new technologies and their product applications are ongoing, and KHI is intent on continuing to deliver excellence in these areas.
The alliance with SMC, and its benefits to our dealers, will be reviewed on a regular basis. Joint activity will be determined based on careful review of the effect it will have on both retail profitability and customer loyalty.
From Suzuki
New Era of Suzuki/Kawasaki Alliance
In August 2000, Suzuki Motor Corporation and Kawasaki Heavy Industries Ltd. announced an “Alliance”. This Alliance was formed to help in parts sourcing, platform production of OEM units, and joint development of new products. And some of benefits from this Alliance, such as products line-up expansion, came to us instantly.
Today, we are announcing that the Alliance has progressed to a new stage. Since we began selling OEM products from Kawasaki, three years have passed. Over these 3 years, we investigated many factors such as profitability, sales volume, customer reaction, influence on brand images, competitiveness of each OEM product. After much discussion followed by careful investigation, we have decided to discontinue the sale of these OEM products.
With the OEM product sales being discontinued, we’re announcing that for the 2006 product, the following models will not be available from Suzuki:
RM65, DR-Z110, LT-V700F, M95, and the QUV product.
Discontinuing the OEM products business gives us the opportunity to focus on developing Suzuki’s own-design product with Suzuki character and brand image. Suzuki will continue to develop new Suzuki models to replace some of these units in the future.
The RM-Z250 will be produced for 2006. As this is a jointly developed unit, Suzuki and Kawasaki may introduce their own versions of this model with features not being commonly used on both of the Suzuki and Kawasaki models. Suzuki Motor Corporation has plans to provide Kawasaki with the OEM product in 2006 as requested by Kawasaki. This will give time for Kawasaki to develop their own models, as well as for Suzuki.
We will keep this Alliance as we continue to review our current status. After a decision is determined for the best business practices, further steps will be taken. Rather than the direct OEM products exchange, it may be more advantageous to consider indirect exchange of their resources so that both companies could keep their brand identities with respect for their loyal customers.
27/05/05
From Kawasaki Australia
Kawasaki-Suzuki Alliance Enters New Phase
The “alliance” announced in August, 2001 between Kawasaki Heavy Industries, Ltd., (KHI) and Suzuki Motor Corporation (SMC) will enter a new phase, focusing on potential exchanges of indirect resources, such as research and development, human resources and components, rather than on direct OEM product exchanges.
Following a successful three year arrangement which allowed sharing of parts sourcing, platform production of OEM units, and joint development of new products, both companies have considered factors related to sales volume, profitability, customer reaction, influence on brand image, and competitiveness of each OEM product. The two brands have jointly agreed that more focused, independent development activity will serve to further enhance their respective brand identities with their loyal customer bases.
This modification to the alliance relationship will mean that OEM product sales will be discontinued, beginning with the KLX400R in 2006; and the following models will not be available from Kawasaki, effective with the 2007 model year:
KLX125, KLX125-II, KDX50, KFX80 and KFX50.
KHI product development has been accelerated during the initial alliance phase, as more resources were able to be placed against brand-specific product needs. The company will continue to develop new models to replace some of the above. Meanwhile, the KFX400 will still be produced for model year 2007.
Achieving significant savings in development resources was a primary goal of the relationship with SMC, and having done that, KHI is in a stronger position for investment spending against future product introductions. The market environment is such that expectations for new technologies and their product applications are ongoing, and KHI is intent on continuing to deliver excellence in these areas.
The alliance with SMC, and its benefits to our dealers, will be reviewed on a regular basis. Joint activity will be determined based on careful review of the effect it will have on both retail profitability and customer loyalty.
From Suzuki
New Era of Suzuki/Kawasaki Alliance
In August 2000, Suzuki Motor Corporation and Kawasaki Heavy Industries Ltd. announced an “Alliance”. This Alliance was formed to help in parts sourcing, platform production of OEM units, and joint development of new products. And some of benefits from this Alliance, such as products line-up expansion, came to us instantly.
Today, we are announcing that the Alliance has progressed to a new stage. Since we began selling OEM products from Kawasaki, three years have passed. Over these 3 years, we investigated many factors such as profitability, sales volume, customer reaction, influence on brand images, competitiveness of each OEM product. After much discussion followed by careful investigation, we have decided to discontinue the sale of these OEM products.
With the OEM product sales being discontinued, we’re announcing that for the 2006 product, the following models will not be available from Suzuki:
RM65, DR-Z110, LT-V700F, M95, and the QUV product.
Discontinuing the OEM products business gives us the opportunity to focus on developing Suzuki’s own-design product with Suzuki character and brand image. Suzuki will continue to develop new Suzuki models to replace some of these units in the future.
The RM-Z250 will be produced for 2006. As this is a jointly developed unit, Suzuki and Kawasaki may introduce their own versions of this model with features not being commonly used on both of the Suzuki and Kawasaki models. Suzuki Motor Corporation has plans to provide Kawasaki with the OEM product in 2006 as requested by Kawasaki. This will give time for Kawasaki to develop their own models, as well as for Suzuki.
We will keep this Alliance as we continue to review our current status. After a decision is determined for the best business practices, further steps will be taken. Rather than the direct OEM products exchange, it may be more advantageous to consider indirect exchange of their resources so that both companies could keep their brand identities with respect for their loyal customers.
