pak suzuki final report khalid

8/8/2019 Pak Suzuki Final Report KHALID

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PAK SUZUKI MOTORS

Assign By: Syed Nawab Course Instructor

Group Member:

Junaid Akhtar 0936115

Jay Kumar 0936113

Farhan Khan 0936___

Mujahid Hussain 0936123

1



ACKNOWLEDGEMENT

First of all, we would like to express our deep gratitude to Almighty Allah,

who enabled us to undertake such an important task and to study about Pak Suzuki

and the Strategies to operate in Pakistan Marketing.

We also wish to acknowledge the valuable guidance provided by our

respected teacher Mr. Syed Nawab. He always motivated and encouraged us in the

completion of this report.

We are thankful to Mr. Abdul Aziz who is the Production Manager in Pak

Suzuki in Head Office Karachi and entire Pak Suzuki Management. They

appreciated the efforts of SZABIST. They have provided all the relevant data as

well as other information relating to the important independent variables.

2



CHAIRMANS REVIEW

In Year 2009 the demand for automobile was sluggish .The industry for

cars and light commercial vehicles experienced 29% decline in the sales volume.

The industry sold 107,768 units during the year against 151,517 units last year. It’s

my pleasure to present review on the performance of the company for the year

December 31, 2009

The demand has depressed during the year due to cost push inflation

resulting from depreciation of Pak rupee, limited financing by banks/leasing

companies and general economics recession.

First half of the year was the worst. Sales volume during this period has

dropped by 53% compared to last period of last year. Second half was some what

better than first half year. As it was grew by 33% over the first half year.

The market size of motorcycle has marginal improved by 2% over the last

year in the organized sector. During the year 593,479 units were sold against

580,604 units last year. During the first half year Demand was 25% lower than

same period of last year. However this loss of demand was offset by the increased

demand latter half year.

3



EXECUTIVE SUMMARY

MARKETING & EXPORTS

Suzuki product remain popular .Despite sluggish market demand for

automobile, Pak Suzuki remain market leader with 48% market share.

The company launched new 1300cc car (SWIFT) in January 2010.

This has been well accepted by the customers. Imported used cars do not

really pose any threats to Suzuki products. Availability of spare parts at economics

prices and reliable after sales service are the strength of Suzuki products. The

export of Suzuki Ravi pickup to Bangladesh and exports of sheet metal parts of

Suzuki Cultus to Europe going well. During the year Three hundred and sixty

units of Suzuki Ravi pick up and parts worth Rs. 120 million and Rs. 22 million

respectively were exported.

LOCALIZATION

The company continues to pursue localization in order to reduce the cost of

product and keep the prices competitive besides saving foreign exchange.

HUMAN RESOURCE

Management and employee relations continued to cordial and industrial

peace prevail during the year. A new charter of demand was negotiated in a

congenial atmosphere and agreement was entered into for the period of ten years.

Human Resource development remains one of the key objectives of the company.

Company spent Rs. 12.5 million on the foreign and local training of its employees.

ECONOMIC CONTRIBUTION

The company has distinctive position in an automobile industry as leading

contributor to the public exchequer. The duties and tax paid and the foreignexchange saved by company its last six years of operations as follows:

4



0

20000

40000

60000

80000

100000

120000

140000

160000

1st Qtr 2006 2007 2008 2009

export sales

Duties and taxes paid by the company during the year represent 0.6%of the

total tax estimate forecast in the Federal budget for the fiscal year 2009-2010.

Company contribution has reduced 1.06% in the last year because of lower sales

volume.

SUMMARY CONCLUSION

The management is optimistic that economic indicator is improving. How ever it

feels that difficult business environment are likely to continue for some time and

profitability will remain under pressure.

5



Table of Contents

S. NO Title Page No

I.

II.

III.

IV.

V.

VI.

VII.

VIII.

IX.

X

XI

Introduction

Corporate Strategy

Situation Analysis

SWOT Analysis

PEST Analysis

Consumer Research and Marketing Mix

Market Analysis

Business Strategy

BCG matrix with PLC

Environmental Policy

Bibliography

01

09

10

19

21

23

25

28

29

33

35

6



Introduction

Pak Suzuki Motors Ltd. is a company assembling and distributing Suzuki

Japan's cars in Pakistan. Currently they are one of the most successful motor

companies in Pakistan.

The firm was founded in 1983 as a joint venture between PAK and Suzuki,

formalizing the arrangement by which Awami Auto Ltd. had produced the Suzuki

SS80 from 1982. Suzuki originally owned 25% of the stock, and has gradually

increased their holding; they now own 73.09%. The company now assembles a

wide range of Suzuki vehicles and aims to produce 150,000 vehicles per year.

(2005 production was 100,000)

Our Vision

To be Excellent All Around .

Our Mission

To provide automobile of international quality at competitive price.

These are Mission and Vision Statement of Pak Suzuki, and they always try to

improve skills of employees by imparting training and inculcating in them a sense

of participation.

• To achieve maximum indigenization and promote the automobile vending

industry.

• To contribute to Pakistani society through development of industry in

general and automobile industry in particular.

7



Statement of Ethics and Business Practices

Here are the code of ethics and Business Practice of Pak Suzuki Motors,

1. Pak Suzuki insists on integrity and honesty of its employees in doing

business. Any unfair or corrupt practices to solicit business is

fundamentally inconsistent with business codes of company

2. Pak Suzuki believes in compliance to regulatory obligation

3. Pak Suzuki believes in free and fair business practices and open

competitive markets. Developing any association with competitors to

distort the pricing and supply of products is contradictory to company’s

business code of conduct.

4. Pak Suzuki believes in transparency in business transaction and they are to

be recorded accurately and fairly in books of accounts in accordance with

standard procedure.

5. Pak Suzuki expects its employees to act in company’s best interest while

holding confidential information. Company expects its employees neither to

solicit internal information from other nor to disclose company’s data or

any other material information to any un- authorized person/body.

6. Pak Suzuki believes in individual’s respects and growth. Its employment

policies do not discriminate on basis of race, religion, gender or any other

factor.

7. Pak Suzuki does not believe in political affiliation.

8



Corporate Strategy

Pak Suzuki is built on the idea of a responsible corporate citizenship thereby

managing environmental, safety & occupational health matters as an integral part

of our business. In fulfilling this responsibility Pak Suzuki adheres to the

following principles:

1) We are committed to provide top quality products to the satisfaction and

requirement of our customers.

2) We conduct our operations in compliance with applicable environmental,

occupational health & safety laws and regulations.

3) We recognize the interrelationship between energy and the environment,

and we promote the efficient use of energy throughout our system.

4) We ensure safe disposal of waste generated from our facility

5) We minimize the discharge of waste materials into the environment by

utilizing responsible pollution control practices.

6) We will continuously seek opportunities to improve our adherence to these

principles.

As it is clearly mentioned in their Vision Statement that to be excellent all around,

and they always operate in Environment friendly. And their Product always be the

environment friendly.

With the globalization of markets, greater foreign competition, and the reduction

of entry barriers, it becomes all the more important to benchmark a company’s

financial indicators on a worldwide basis. World stock markets have recently

witnessed a return to fundamental financial analysis. Sound management as

opposed to hype will in the long run generate shareholder value.

9



Situation Analysis

In order to plan in a better way we have to perform situation analysis

General Environment

Product Market

Customer Market

General Environment

As we know most of people in Pakistan associated with middle class

families and haven’t got enough money to buy a Luxurious car. So they purchase

economical vehicles such as Suzuki Mehran, Alto and bikes for their convenience.

Nowadays our life becomes very fast and every one try to reach their destination

as soon as possible and life style of people is continuously changing.

Time is the main factor to reach and complete the work so people shift from

public Transport to their personal convinence, so every one prefer to have his/her

own car. According to environment of Pakistan Pak Suzuki will be most suitable

in available vehicles from middle class to upper class.

10



Product Market

Sale Volume and Trend

Growth Rate

Product variety & Prices

Sale Volume

Pakistan's car sales have shown signs of improvement in the early months

of 2010, largely thanks to price reductions on the part of carmakers. Car sales of

10,372 units were up by 28% month-on-month (m-o-m) in October and were 8%

higher than in October 2008.

Although this may appear to be a welcome sign of recovery after a 50%

decline in car sales in FY09 (ending June 2009), the Pakistan Automotive

Manufacturers Association (PAMA) has partly attributed the growth to a rush by

consumers to buy before prices were increased again at the end of October.

Several carmakers have raised prices to counter the effects of exchange-rate

fluctuations, which have been adversely affecting margins. Pak Suzuki Motor

Company, has once again showed great performance in the automobile sector and

has maintained the sales record of the past. It has maintained 48 percent market

share of the industry.

This has been informed in a recent convention that Pak Suzuki is not only

the top manufacturer of car industry but also tops the list in sales of the car

industry. As show in the graphs

11



0

20000

40000

60000

80000

100000

120000

140000

2006 2007 2008 2009

sales volume motor

car

0

20000

40000

60000

80000

100000

120000

140000

2006 2007 2008 2009

Production volume

motor cars

12



Growth Rate

On February 2009 Pak Suzuki has 48% market share. The sales growth

covered all car segments, but the global trend for a shift to small cars was bucked

as the highest m-o-m growth came in the 1300-1600cc segment, where sales rose

by 31%. The 850cc and 1000- 1300cc segments both recorded growth of 25%. For

the first four months of FY10 combined (July to October), sales rose 21% to

34,553 units. However, with October's price hikes likely to affect sales in the

coming months, BMI is forecasting car sales growth of around 5%. While we

expect some correction in the market from a particularly low base in the last

financial year, higher prices will drag on the market's potential growth.

Indus Motor took advantage of growth in the higher engine capacity passenger car segment, with sales of the Toyota Corolla contributing to growth of

25% y-o-y in October and growth of 77% for the first four months of the financial

year. This took the company's market share to 42% from 28% in the same period

of the previous financial year. Pak Suzuki's market share for the four months fell

13



to 45% as its sales for the period were down 2% y-o-y, despite a 23% increase m-

o-m in October and 2% y-o-y increase for the month.

Product variety & Prices

Following are some varieties of Moped with their and Prices:

SWIFT (1300 cc)

Price: Rs. 1,049,000/-

The European inspired exterior gives

Swift a distinctive look. A unique

stylish and design that turns a head

where you go. The spirited engine makes

for exhilarating drive and gives you ultimate

freedom where the road takes you.

Colors: Pearl Red, Graphite Grey, Solid white,

Indigo, Silky Silver, Aqua Blue, Eminent Blue

LIANA (1300 & 1600 cc)

Price: Rs. 1,230,000/-

The Suzuki Liana available in 1300 cc manual

14



transmission and 1600cc automatic transmission

takes you out of ordinary and into the realm. Liana

is entirely different car, its style, dimension and

comfort will inspire you to see everyday as an opendoor to a new age.



CULTUS (1000cc)

Price: Rs. 897,000/-

Cultus is the blend of space and craft.

Its trim body Conceals ample space &

flexblity for both passenger and storage.

Cultus ensures everyone, exceptional

Value and quality.



ALTO (1000cc)

Price: Rs. 662,000/-

Alto has a bright, roomy and comfortable

cabin which keeps body relax and strong

and lighter body shell resulting in smooth

drive due to reduction of unpleasant noise

harshness and vibration. Its small turning

15



radius and compact body make parking a breeze.

Colors: Olive Green, Pearl Red, Graphite Grey,

Solid white, Indigo, Silky Silver, Aqua Blue, Eminent Blue

MEHRAN

Price: Rs. 514,000/-

Unrivalled in its class, Mehran is Pakistan’s largest

selling car. More smart features like head turning

lamp, matching front grill and a two spoke steering

wheel gives it the tidy look. Functional economy,

peak performance or unmatched fuel efficiency,

Mehran VXR is the leader.

Colors: Pearl Red, Graphite Grey, Solid white, Silky Silver, Eminent Blue

APV

Price: Rs. 1,775,000/-

APV 1500 cc (Imported) The New APV gives

you everything you ever wanted in your vehicle.

Spacious interior for comfort, tough engine tocarry large loads and plenty of room for passengers

to enjoy a comfortable day long ride.



JIMNY

Price: Rs. 1,850,000/-

JIMNY 4X4 JEEP 1300cc (Imported) Steady,

sturdy and smart, Suzuki Jimny with new wide

tread brings you the ultimate pleasure of a real

4-wheel drive. It has got all the sporting spirit to

go along for adventurous free souls.

16



Colors: Solid white, Silky Silver

BOLAN VAN

Price: Rs. 609,000/-

The Suzuki Bolan Hi-roof gives you everything

you ever wanted in a van. Spacious interior for

comfort, tough engine to carry large loads and

plenty of room for passengers to enjoy a comfort

-able day long ride. Air-conditioned model

(dual thrust) has been recently introduced.

Colors: Pearl Red, Solid white, Silky Silver

RAVI PICKUP

Price: Rs. 489,000/-

RAVI Pick Up 800cc Suzuki Ravi is the veritable

cargo vehicle with an amazing capacity for load

bearing and durability. Undoubtedly, the unrivalled

commercial vehicle in its class, Ravi is the bread

winner for millions in Pakistan. This light comm.

-ercial vehicle referred to as the mini revolution,

replaced the animal-drawn vehicles in Pakistan.

Colors: Pearl Red, Solid white, Silky Silver

17



Customer Market:

Customer market and customer buying behavior can be categories:

Demographic Factor

Life Style

Usage Pattern and Behavior

Preference of Specific end Benefit

Demographic Factor:

Target market of Pak Suzuki according to Age, Gender and Income:

Age 20 year to upwards

Gender Male and Female

Income starting from Rs.20000

Life Style:

Customer Life style of Pak Suzuki in terms of AIO can be described as

Activities Early Professional, Executives, House Hold, and Business

Purpose

Interest Personal Use, Luxury

Opinion Sensitive, Conscious, Responsible and Social

Usage Pattern and Behavior:

Mostly People use such vehicle for their convenience e.g. go for job and for

family use, for Business Purpose.

Preference of Specific end Benefit:

18



Customers who use such vehicle are sensitive, conscious and responsible people.

They tried their level best to save time as much as possible so they want

something which is quality wise good and also affordable.

SWOT ANALYSIS

Strength:

1) Highest Market Share

2) Low Price Vehicles

3) Resale of Local Assembled Cars

4) Large Distribution Channels

5) Rising per capita income with changing demographic distribution

6) Highly Innovative and deep product line

7) Highly maintained supply chain

8) Well Managed and highly competitive staff

9) Well defined and beurcratic organizational structure

10) Complete understand between Distributors

11) Easy available of spare parts.

Weakness:

1) Scarcity of raw material

2) Bargaining power of supplier is low

3) Lack of coordination and linkage with Government/semi government

supporting bodies

4) Less Technical Training Institute

5) Less distribution channels in sub urban

Opportunities:

19



1) Increasing Demand for Cars

2) Efficient Efi engine

3) Large Market size to operate

4) Global spare part market5) Space saving Small size CNG cylinders

Threats:

1) Local Competitors like Toyota, and Honda

2) Foreign Investment and setup production facilities

3) Smuggling of Auto Parts

4) Inflation rate

5) Heavy Taxes

6) Competition from import cars

7) Increase of Fuel Prices

20



PEST Analysis

Uncontrollable environment are those external factors which can prohibit us or can

create hurdles between us and our business. It is also called pest analyses which

are as follow:

Political Environment

Pakistan has to face lots of ups and down since its independence. So many

governments have been broken down by military authority and most of the

time marsh law applied on Pakistan. In this scenario no entrepreneur was

willing to invest in Pakistan except few. Due to this market environment

wasn’t so good in Pakistan. Anyhow Pakistani government never been

trustworthy for any investor.

Legal Environment

As all countries, Pakistan also has some legislation about each sector. But like

developing countries it is hardly being imposed by authorities. Only due to

corruption government encourage smuggling and black marketing. When

anyone supported by government or give more commission to Govt. get inside

in the market and they have very soft behavior by government for any legal

action. Such unethical activities destroy all law and legislation.

Economic Environment

Pakistan, an impoverished and underdeveloped country, has suffered from

decades of internal political disputes and external ongoing conflict with India.

21



However, IMF approved the government policies, encourages by different

foreign assistance and renewed access to global market since 2001.

By following these policies government succeed to reverse the situation of

economy during last five years.

Socio-Culture Environment

Pakistan has strong culture background and it has been follow in some

particular region of Pakistan strictly. But with the passage of time it is going to

change. Thoughts of people, choices, taste and style has been totally changed.

If we talk about the transportation source in Pakistan, People use buses,

pickups etc for journey. They also have their own as well e.g. cycle, bikes etc

and lots of people are pedestrian. But now the people who haven’t any source

of transportation they also want something for their convenience because they

wants to save their time as much as they can. People want to use such vehicle

which looks beautiful and also affordable.

Technological Environment

Technological factor also very important and we haven’t control on it.

Technology is grooming with the passage of time. People also want that the

product that they have is full of technology. We never control on technology

for example you launched the product last year and your sale volume on that

time is very high but after sometime due to latest invention a lots of substitute

exist in market which affect on your business so you can’t hold on it.

22



Consumer Research and Marketing Mix

Consumer Research

Perception of people about Suzuki Products:

People think the product should have excellent fuel consumption and a

good resale value.

Easily availability of spare parts everywhere even in rural areas.

The quality of product is made according to Pakistan roads and

infrastructure.

Product line extension with the very low difference of price.

3S (Sales, Service and spare Parts) at your door step.

Brand Loyalty.

People want such vehicle which doesn’t effect on their prestige and also

within the range of them.

So after this research we come to know that Suzuki is best choice for the customer.

It is safer on the road less fuel consumption and Environment friendly product.

Because of these features it is also economical.

Marketing Mix

Promotion

For Promotion of Pakistan Suzuki automobiles, we will use different media T.V,

Radio, Test Drive, Sponsorship, News paper etc. We will aware our target

audience through above sources.

23



Placement

The distribution channels of Pak Suzuki shown in the following

Diagram.

24



Market Analysis

Porter’s 5 Force

The strategic business manager seeking to develop an edge over rival firms can

use this model to better understand the industry context in which the firm operates.

Here are the Porter’s 5 forces.

1. Potential new entrants

2. Bargaining power of buyers

3. Bargaining power of suppliers.

4. Threat of substitutes.

5. Industry Competition/rivalry between competitors.

1. Potential new entrants

In Pak Suzuki this can be described as

• In the New Entrant category of Porter's 5 forces, we can

see that it would be tremendously difficult for another car

manufacturer to enter into the market.

• The rate at which the industry is changing does not allow

for new entrants to come into the market very easily, and

the cash investment for a new firm to produce massive

quantities of cars is in the billions.2. Bargaining power of buyers

• Buyers, from the strong competition inside of the market find

themselves in a very favorable position.

25



• Since competition is so strong between auto makers and

dealers, consumers will often do research on a vehicle before

making a purchase.

• The high quantity of dealer’s forces prices to be very

negotiable and the consumer often knows exactly what the

dealer paid for the car.

• Thus, consumers are in an enviable position: The market

supply is strong, competition between auto makers and auto

sellers is very intense, and there is no set price.

• Everything is negotiable. For companies like Pak Suzuki to

continue to compete, the quality of their offerings must be

excellent, dealership service must be strong, and they must

focus on offering consumers a product with high durability

and value.

3. Bargaining power of suppliers.

• Pak Suzuki’s suppliers have been

known to be some of the most dedicated suppliers in the

industry.

• By virtue of the Just-In-Time

production concept pioneered by Pak Suzuki, the auto

industry itself has seen a very positive relationship

develop between its suppliers and producers.

• Suppliers are expected to make

deliveries of parts in small quantities several times a day.

• Pak Suzuki, by reducing its part

inventory, has been able to speed up production costs,

save money by not letting parts sit on the shelf, andimprove its relationship with parts suppliers, which rely

on Pak Suzuki for their revenue.

4. Threat of substitutes

26



• Consumer preference is

changing (Mini cars are being replaced by compact or

midsized cars)

• Setting up integrated

manufacturing facilities may require higher capital

investments than establishing assembly facilities

• Pakistan is also likely to

increasingly serve as the sourcing base for global

automotive companies, and automotive exports are likely

to gain increasing importance over the medium term

• Pakistan passenger car

market is moving towards cars of higher capacity.

5. Industry Competition/rivalry between competitors

Industry competition between auto makers is fierce.

• The typical

consumer, when searching for a particular vehicle is

bombarded by choices.

For example, a search for ALTO (Product of Suzuki)

yields a result of Coure (Daihatsu) with a minimal extraamount.

ANNUAL PLANT CAPACITY

Competitor Car Quantity Pak Suzuki Motor Co. Ltd. 68,000

Indus Motor Co. Ltd. 34,000

Honda Atlas Cars (Pakistan) Ltd. 30,000

Dewan Farooque Motors Ltd. 15,000

Ghandhara Nissan Ltd. 6,000

27



Business Strategies

Business strategies planning are to be conducted in order to know about their

various businesses how each business performing. With the help these strategies

we come know which business require investment and in the similar manner

which require promotional activities. We can use the same promotional activities

and with the help of synergy, their different department (R&D, Marketing, Sales

etc) can be shared in different business. By utilizing the synergy efficiently we can

reduce cost of product. And this strategy will help manager to identify that which

SBU is falls in which categories, for that there is an analysis know as BCG Matrix

Analysis which gives the detail information to the managers to carry which SBU,

and how many resources should a company allocate to which Unit.

In Pak Suzuki the main SBUs are

1) Swift

2) Liana

3) Cultus

4) Alto

5) Mehran6) Ravi

7) Bolan

8) Jimny

28



After analysis from different data we came across the BCG analysis and draw the

following conclusion

BCG Matrix

29



30

Dog

Question Mark Star

Cash Cow

High

Low

Low

High

MarketGrowth

MarketShare

MehranAlto

Cultus Ravi

Lian

aAPV

Jimny

Bola

n

Swif

t



SBUs Analysis

Mehran:

Mehran has the highest growth rate in automobile sector in Pakistan. Pak

Suzuki always changes the different parts of Mehran either exterior or interior

whenever it comes to its maturity level

Mehran attracts the people who have a salary package between 20,000 to 30,000

per month. The youngsters also prefer the Mehran because of its size and

economical price. Small business people also prefer Mehran because of its low

maintenance cost. Mehran also attracts people who move from bike to the cars.

Liana:

Liana is a luxurious and highest price car of Pak Suzuki. It was made to

compete Pak Suzuki biggest competitors like Toyota and Honda. Liana has the

31

Swift JimnyBolan

MehranAltoCultusRavi

Liana

APV



same features which are available in Corolla and Civic but still it couldn’t make its

market as compare to both these cars. Liana has replaced the Pak Suzuki’s Baleno

in 2005-06, since Pak Suzuki tried several ways to establish its position but failed

to do so.It was made for a people of high income group but due to high prices in which the

market was already giving names like corolla and civic who has their strong brand

name and customer loyalty, liana was failed to capture the market.

Swift:

Due to failure of Liana Pak Suzuki introduced another 1300cc car in Jan

2009. Swift has all the latest features like power steering, central locking, Auto

Transmission and the ABS. All the 1300cc cars in Pakistan have price range of

1300000 to 1400000, while Swift was introduced at 999000 and recently it was

increased at 1049000. It has still advantage of price competition as compare to

other 1300cc cars in Pakistan.

Ravi:

Ravi is for the people doing small business especially cargo services

like home delivery services, TCS and market delivery. All people doing

business of these types are loyal customers to Ravi. Although the competitor

launched the Shehzore which has captured the some market share of Ravi

but although its sell did not decline too much.

32



PRODUCTION & SALE OF SOME VEHICLE FROM 2005-2009

Name 2005-2006 2006-2007 2007-2008 2008-2009

Mehran P 35,433 36,988 36,249 13,239

S 35,982 37,007 35,526 13,421

Alto P 17,513 21,546 18,805 6,641

S 16,823 21,988 19,097 6,550

Cultus P 16,823 21,988 19,097 6,550

S 21,390 29,837 27,563 9,198

Bolan P 10,429 15,520 17,250 9,639

S 10,451 15,566 17,209 8,664

Liana P 5,370 5,964 2,605 684

S 4,571 6,067 2,983 851

Ravi P 5,418 10,117 11,828 12,643

S 5,416 10,098 11,857 11,900

Product Expansion

Pak Suzuki also deals in motorcycle and also in Marine equipment, and

they have a variety of Product line expansion in Motor bikes is also one of thelargest customers size to operate and has a high market size to fulfill the needs of

the customers.

It also operates in the spare parts of the vehicles and Motor bikes. So they

are also operate in vertical integrated, and sometimes the company made different

venture to fulfill the needs of its customer, such as it has joint venture with

General tier for it products.

In Marine segment, the Company is manufacturing the Equipments for ships, it is

also one of the largest area to operate, so here the Pak Suzuki plays the role of

Business ventures and the transaction at this level is B2B Transaction.

33



Environmental Policy

As a general manufacturer of automobiles, motorcycles, outboard motors, etc.,

Suzuki addresses environmental conservation at all stages in its operations from

development to disposal. In product development, we make every effort toimprove fuel economy, reduce exhaust emissions and noise, and develop clean

energy vehicles, etc. In manufacturing, we address issues such as reducing

environmental risk, reducing energy, and promoting the use of alternative energy.

In distribution, we focus on improving transportation efficiency and energy

reduction, promoting the three Rs and the use of low emission transport. In

marketing, we address issues related to promoting environmental management at

our dealers and proper disposal of end-of-life products, etc.

In addition to activities related to production, we also promote energy reduction

and green purchasing in our offices, provide our employees with environmental

education, promote environmental management at our dealers, and provide social

action programs in local communities.

Suzuki 2008 Environmental and Social Report (web version)

34



Future Outlook of the Company:

In Future company is going to offer a new activity for it’s potential and

Targeted customers

Suzuki Insurance Arrangement Program

It is a complete peace of mind solution to all your Auto Insurance needs

exclusively available at Pak Suzuki authorized dealerships. This is a

Customer focused Auto Insurance Program with the following distinct

features:

a) Best premium rates

b) Online/Instant policy issuance (Walk in – Drive out Insured)

c) Exclusively Repairs at Pak Suzuki Authorized Dealer workshops only

d) Quality Repairs Using Suzuki Genuine parts with 6 Months Warranty

on parts

e) Largest Country Wide Dealer Network Support

f) Call Center facility

g) Fastest claim settlement time.

35



Bibliography

http://www.paksuzuki.com.pk

http://www.google.com

http://en.wikipedia.org/wiki/Pak_Suzuki_Motor

http://www.globalsuzuki.com

News Papers,

Business Review magazines

WELDING SHOP

During the welding process sparks and bits of slag can scatter up to 40 feet from the area

of welding. This can cause damage to people and create a fire hazard. In your welding

shop you build a metal table to do your welding on and stay away from wood or other materials that can catch fire. The welding shop should be in an area that is well

ventilated. Welding can generate dangerous gases that need to be removed from the room

and smoke as well. Also, bright overhead light needs to be set up and aimed over your welding table. If your auto shop has an extra room with cinder block walls and a concrete

floor, you are in luck. This will make an ideal place for your welding shop. You want to

avoid any surface that can be damaged or set on fire by sparks and hot slag.

Once you have your room set up correctly, various power tools will be needed as well asyour welding accessories. Power tools such as a reciprocating saw, angle grinder,

portable band saw, and a chop saw will come in handy during your welding projects. An

angle grinder is ideal for removing excess slag and cleaning up rough edges on metal.Specific tools for working on metal will be needed as well. These include metal brakesand metal benders that are available for all sizes of metal. Other suggested tools are

magnetic clamp, center punch, metal file, C-clamp, corner clamp, cold chisel, ball peen

hammer and a hacksaw. This not a complete list but is generally a good place to start.The list of tools you can use in welding is almost endless and you will constantly

discover new tools that you will need as you become more advanced in the art of

welding.

Setting up a welding shop is really about common sense more than technical know how. Neophytes to welding are quick to forget about the extreme temperatures needed in the

welding process and therefore do not realize the fire hazard of a welding area. If you aremore experienced, it is fairly obvious that carpet in your welding shop is not a good idea.A good welding shop not only protects the welder and aids in good welding but it

protects the other people in your auto shop by not exposing them to hot sparks and

blinding light.

Jason has been in the construction equipment and industrial sales business for over 10years. He owns and operates Red Hill Supply to better serve the automotive and

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industrial industries

Press shop

The machines and systems in a press shop have to withstand a lot. No wonder then that production equipment has to be both of the highest quality and suitable for harsh

environments. After all, environmental conditions also place demanding requirements on

the components used.

Built for these kinds of applications: the control circuit device range RMQ Titan®. The particularly high degree of protection on the operator side ensures optimum safety – the

LED technology for indication and the spring-loaded termination ensure a high level of

device safety that is not even impaired by severe vibrations.A further bonus: individually tailored customised inscriptions. A laser is used to provide

customised inscriptions on the operating elements that are both durable and wipeproof.

Restricting operation of the presses to authorised personnel is a key requirement. That’s

why we can make allowance for the existing locking systems of end customers in theRMQ Titan® range. A tried and tested helper in this rugged working environment:

Moeller’s our FAK foot and palm switch. Its outstanding mechanical shock resistance

and extremely high degree of protection are ideal for use in the press shop.

Safety is the primary concern in the press shop. Our control relay easySafety supports theimplementation of applications which comply with the highest safety demands compliant

to international safety standards. Equipped with a host of conventional safety relays,

easySafety also incorporates standard functions into just one device.Thus, the safety control relay features the safety configuration which incorporates the

safety circuit diagram, in addition to the standard circuit diagram.

PAINT SHOP

Many people like to own a vehicle for the ease it provides in getting around and there are

many cars, trucks and other vehicles on the road. Maintenance of these is important and

keeping the paintwork of your vehicle looking good can have a number of advantages. If the paintwork on your vehicle needs some attention then an auto paint shop is one of the

best places to get the work done.

There are a couple of main reasons why people get their car painted. On older cars the

paintwork can become a little tired, lackluster and damaged. If the car still runs well thena new paint job can improve the appearance and keep it looking good for a few more

years. On newer cars where there is minor paintwork damage that can be caused by a

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number of reasons then spot painting can be used to repair this. An auto paint shop will

generally be capable of carrying out either of these types of paintwork.

Using an auto paint shop to keep the paintwork looking good on a new or older car canhave a few advantages. Most people like having possessions that look their best and this

is as true for a car or truck as it is for anything. If you are trying to sell your vehicle, thenthe better it looks the quicker it should sell and the more money you should get. The

paintwork on your car also does a job acting as a barrier to protect the metal below fromcorrosive effects such as UV light, bird droppings, salt spray and other dirt. Keeping the

paintwork on a car in good condition should therefore help to extend the useful life of the

vehicle.

If you need the services of an auto paint shop for your vehicle there are a few of thesearound. This can include nationwide chains and local independent shops. A couple of the

well known nationwide chains include Earl Scheib and Maaco. If you have one of these

nearby they can be good places to get the work done for a few reasons. They generally

offer a good cost for their services and also tend to have the biggest selection of paintsavailable. Maaco for example have around 10,000 colors available, so if you need only

minor paint repairs they should have a color that is identical to that of your vehicle.

The cost of having a car painted will obviously depend on a few factors. One of these isthe size of the job and whether the whole car needs to be repainted or whether spot

repairs can be done. Other factors can include the quality of the work. Earl Scheib, for

example, offers a silver, platinum and diamond paint service. If the paintwork on your car needs some attention the best way to find out how much it will cost is to take it to an auto

paint shop and get an estimate. It can be worth doing this at two or three paint shops to

get some price and service comparisons.

Keeping the paintwork on a car looking good is common sense. If the paint on your vehicle needs attention an auto paint shop can be one of the best places to get this done.

They have the skill and experience to do a good job and when finished should have your

vehicle looking back to its original best.

FINAL ASSEMBLY

Final assemblyTough competition in the automotive sector places huge demands on the final assembly

process. Valmet Automotive's final assembly consists of a multiproduct single assembly

line, complemented by sub-assembly lines. The assemblies have been developed to also

meet the new demands of electric vehicles.

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The cars are assembled flexibly according to customer-specific needs. World-class

quality of the final assembly has been demonstrated during the long collaboration with

Porsche, also recognized by J.D. Power.

The production process is based on the balanced sequence method, with sub-assemblies

and suppliers synchronized in accordance with the just-in-time principle.

ASSEMBLY LINE

An assembly line is a manufacturing process in which parts (usuallyinterchangeable parts) are added to a product in a sequential manner usingoptimally planned logistics to create a finished product much faster than withhandcrafting-type methods. The assembly line developed by Ford MotorCompany between 1908 and 1915 made assembly lines famous in thefollowing decade through the social ramifications of mass production, such asthe affordability of the Ford Model T and the introduction of high wages for

Ford workers. Henry Ford was the first to master the assembly line and wasable to improve other aspects of industry by doing so (such as reducing laborhours required to produce a single vehicle, and increased productionnumbers and parts). However, the various preconditions for the developmentat Ford stretched far back into the 19th century, from the gradual realizationof the dream of interchangeability, to the concept of reinventing workflowand job descriptions using analytical methods (the most famous examplebeing scientific management). Ford was the first company to build largefactories around the assembly line concept. Mass production via assemblylines is widely considered to be the catalyst which initiated the modernconsumer culture by making possible low unit cost for manufactured goods. Itis often said that Ford's production system was ingenious because it turned

Ford's own workers into new customers. Put another way, Ford innovated itsway to a lower price point and by doing so turned a huge potential marketinto a reality. Not only did this mean that Ford enjoyed much larger demand,but the resulting larger demand also allowed further economies of scale to beexploited, further depressing unit price, which tapped yet another portion of the demand curve. This bootstrapping quality of growth made Ford famousand set an example for other industries.

PLASTIC SHOP

Plastic Components in a Car

A quick look inside any model of car shows that the passenger compartment is

dominated by plastics. This is the area where plastics are more traditionally established.But besides instrument panels, interior trim and upholstery, plastics are used in lighting,

bumper systems, fuel storage and delivery systems, ducts, fenders and exterior body

panels and increasingly in engine compartment or other under-the-hood components.

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The ``invasion`` of plastics in the engine compartment is by no means over. Engineers in

plastics and automobiles are working together closely now to optimise other systems,

integrating injection and blow moulded parts, and harnessing plastics and elastomers thatgive a range of properties from ``soft`` to ``hard``, but can be moulded simultaneously or

in sequence, offering a better product without expensive assembly work.

Plastics are also beginning to make a significant contribution to the structural make-up of

the car. Intensive development of thermoplastics has opened the way to production of individual bodywork panels by injection moulding, to meet the high temperature of the

paint stoving ovens used by the automotive industry, and electrically-conductive grades,

for electrostatic painting.

Automotive and Transport Division Working Groups

• Regulatory• Communication

Plastics in Transportation

Thanks to their numerous advantages, plastics have been increasingly used in vehicles

over the last 25 years, representing today an average of more than 100 kg per car whichreplace 200 to 300 kg of traditional materials.

Plastics in Vehicles applications

• plastics for battery• plastic body panels• plastic bumpers• plastic dashboard• plastic door panels• plastics for fuel system• plastic interior and plastic exterior trims• plastic lighting systems• plastic seats, seatbelts, airbags• plastic undershields• plastic upholstery

Plastic Features and Advantages in Transport

• weight savings to support reduction of fuel consumption and carbondioxide emissions

• no corrosion allowing longer life vehicles• substantial design freedom allowing advanced creativity and

innovation• flexibility in integrating components• safety, comfort and economy• recyclabili

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Maintanance Shop

Auto maintenance describes the act of inspecting or testing the condition of car

subsystems (e.g., engine) and servicing or replacing parts and fluids. Regular maintenance is critical to ensure the safety, reliability, drivability, comfort and longevity

of a car. During preventive maintenance, a number of parts are replaced to avoid major damage or for safety reasons, e.g. timing belt replacement.

The actual schedule of car maintenance varies depending on the year, make, and model of

a car, its driving conditions and driver behavior. Car makers recommend the so-called

extreme or the ideal service schedule based on impact parameters such as

• number of trips and distance traveled per trip per day• extreme hot or cold climate conditions•

mountainous, dusty or de-iced roads• heavy stop-and-go vs. long-distance cruising• towing a trailer or other heavy load

Experienced service advisors in dealerships and independent shops recommend schedule

intervals, which are often in between the ideal or extreme service schedule. They base iton the driving conditions and behavior of the car owner or driver.

Common car maintenance tasks include:

• Car wash• check/replace the engine oil and replace oil filters• check/replace fuel filters• inspect or replace windshield wipers• check or refill windshield washer fluid• inspect tires for pressure and wear• Tire balancing• Tire rotation• Wheel alignment• check, clean or replace battery terminals and top up battery fluid• inspect or replace brake pads• check or flush brake fluid• check or flush transmission fluid• check or flush power steering fluid• check and flush engine coolant• inspect or replace spark plugs• inspect or replace air filter• inspect or replace timing belt and other belts• lubricate locks, latches, hinges• check all lights• tighten chassis nuts and bolts• check if rubber boots are cracked and need replacement

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http://en.wikipedia.org/wiki/Brake_pad

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http://en.wikipedia.org/wiki/Transmission_fluid

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• test electronics, e.g., Anti-lock braking system or ABS• read fault codes from the Engine control unit

Some tasks that have equivalent service intervals are combined into one single serviceknown as a tune-up. In modern cars, where electronics control most of the car's functions,

the traditional tune-up doesn't apply anymore. Maintenance jobs like a tune-up used tomean getting the engine's performance back on track. Today embedded software takescare of it by constantly checking thousands of sensor signals, compensating for worn-out

spark plugs, clogged filters, etc. The so-called limp-home function allows driving on

limited power when the engine is in trouble. In the old days this might have meant a breakdown.

Routine car maintenance is related to vehicle fuel economy.[1] Some of the procedures

include:

• Ensure tires are properly inflated. The owners manual for the vehiclewill indicate the proper pressure to inflate you tires to. Decreased tirepressure increases the rolling resistance of your tires and decreasesfuel economy, and may also increase tire wear and impairperformance.

• The thermostat, oxygen or O2 sensor should be replaced either at amanufacturer recommended interval or when a electronic fault code/low temperature problem is detected. Electronically fuel injectedvehicles have an O2 sensor or sensors in their exhaust system whichhelps the vehicles computer determine how to optimize fuel economy.

These O2 sensors may need to be changed periodically for a vehicle tooptimize it's air fuel mixture and maximize it's fuel economy.

• Ensure vehicle air filters are clean. Black or otherwise dirty air filtersmake your engine work harder to get enough air for proper combustionand decrease its efficiency; however, electronically fuel injected carscan automatically compensate for the decreased air flow caused by adirty air filter and experience relatively little decrease in fuel economy.Most owners’ manuals will recommend a service interval at which tochange the air filter, but periodic visual inspection is the best way toensure that the air filter is clean.

• Using the recommended weight of oil can decrease the burden on theengine. Heavier oil weights, such as 20W-50, are harder to maneuverthrough the engine than, for example, 10W-30 or 5W-20 oils. Theresult can cause a decrease in fuel economy.

In some countries, the completed services are recorded in a service book which is rubber-stamped by the service center upon completion of each service. A complete service

history usually adds to the resale value of a vehicle.

MATERIAL HANDLING

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