DATE=05/04/02

TYPE=BACKGROUND REPORT

TITLE=SUZUKI RAISES U-S PROFILE

NUMBER=5-51554

BYLINE=JOHN BIRCHARD

DATELINE=WASHINGTON

INTERNET=

CONTENT=

INTRO: In the United States, the name Suzuki is known more for sport utility vehicles and motorcycles than for automobiles. But, as V-O-A's John Birchard reports, the Japanese manufacturer is setting out to change that.

TEXT: American Suzuki Motor Corporation has launched a new model in the United States, the Aerio (PRON: "Air-ee-oh"). The compact car comes in two versions -- a four-door sedan and a five-door sport wagon that falls into the new "crossover" category, combining features of a sport utility and car.

Bob Ochsner (PRON: "Ox-ner"), a Suzuki spokesman, says the Aerio has a big role to play.

/// OCHSNER ACT #1 ///

It really represents a culmination of about five years of planning. It's really the first new car that American Suzuki has introduced, and it's right in the middle of a very hot new category called the "crossover" segment.

/// END ACT ///

The executive editor of Motor Trend Magazine, Matt Stone, has tested the Aerio, and finds it appealing.

/// STONE ACT #1 ///

First of all, it's got kind of a funky design, that very in-vogue, tall Japanese sedan-look that a lot of people like, particularly in the youth market. The hatchback is kind of very square and funky and bright-colored-looking.

/// END ACT ///

Mr. Stone likes Aerio's power -- the 141-horsepower four-cylinder engine. But, more than that, he says:

/// STONE ACT #2 ///

It's got some quality to it. It has very nice build-quality, good materials. Again, that's not to say that the other premium Japanese brands don't, but Suzuki has never competed here before. And, again, it's a nicely-built, nicely-finished car, and this market tends to put a lot of stock and value in that.

/// END ACT ///

The competition in the segment is already fierce, and the sales leaders are some of the big names in the business -- Toyota, Ford Focus and Mazda Protégé. But Bob Ochsner says his company is ready.

/// OCHSNER ACT #2 ///

Some of the critics out there, who didn't think Suzuki made cars, now are looking again, and seeing a car that definitely competes, if not beats, some of the benchmark models in this niche.

/// END ACT ///

The price range for the basic Aerio sedan is 14-thousand dollars, and for the L-X wagon is 16-thousand. /// OPT /// We asked Motor Trend's Matt Stone, is it priced right?

/// STONE ACT #3 // OPT ACT ///

I think it's priced reasonably. I don't think it's priced as aggressively as it yet needs to be to really make an impact. So it'll be interesting to see if there are any price changes or incentives or rollbacks or rebates or that kind of thing. Fair, but nothing more than that.

/// END ACT // END OPT ///

Suzuki has announced expected sales of 20-thousand units for the Aerio in its first year. For some observers, that seems low. But Bob Ochsner says the company strategy is steady, sustainable growth.

/// OCHSNER ACT #3 ///

We are a small player still, looking to capture a long-range goal of one percent of the U-S market, and I think it's this predictable, steady growth that will, eventually, guarantee success for Suzuki. And that's what's (what has) guaranteed success for the company for the last 53 years of profitability.

/// END ACT ///

Suzuki will push the competition even more with its Aerio effort in September, when it introduces an all-wheel-drive version of the vehicle. (Signed)

NEB/JJB/TW