Suzuki Exits China, Ends Joint Venture With Changan Automobile

Suzuki Motor Corporation has agreed to transfer all equity in Chongqing Changan Suzuki Automobile Co., Ltd. (Changan Suzuki), an entity accounted for using equity method in China, held by Suzuki to Chongqing Changan Automobile Co., Ltd. (Changan Automobile). Suzuki has transferred its 50 per cent to the Changan Automobile, while the management of Changan Suzuki will be continued as 100 per cent subsidiary of Changan Automobile. Moreover, Suzuki and Changan Automobile have discussed towards future development of Changan Suzuki.

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Osamu Suzuki, Chairman, Suzuki said, "Approximately 25 years ago, we launched the Alto in China, and since then we have made efforts in cultivating the Chinese market. However, due partly to shifting of Chinese market to larger vehicles, we have decided to transfer all equity to Changan Automobile."

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According to the agreement between Suzuki and Changan Automobiles, the president sent from Suzuki will resign; however, Suzuki will continue licensing of production and sales of Suzuki models to Changan Suzuki. Moreover, the transfer of equity will complete upon completion of legal proceedings in China, while the transfer will have no influence on Suzuki's financial performances for this fiscal year.