2011 Suzuki Grand Vitara Premium on 2040-cars

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Which automaker's 84-year-old CEO is making investors nervous?

We haven't heard much about Suzuki since it decided to leave the US market in 2012, but things are going well for the little automaker these days with the recent announcement of record annual profits. It would seem that investors should be ecstatic, but they are starting to question the man at the helm. Company president and chairman Osamu Suzuki is now 84 years old and is guaranteed at least one more year as the leader, but shareholders want to know who is taking his place when the inevitable happens.
We're not being ageist, here. As long as the Suzuki can run the company to the satisfaction of investors, he absolutely deserves the top spot. According to Bloomberg, the issue making shareholders so edgy is that the business doesn't have a transition plan in place. The president obviously isn't a young man, and folks are worried that if something happens suddenly, there could be chaos deciding a successor and a free-falling stock price.
Suzuki's tenure at the company is somewhat astounding. He married the granddaughter of the founder and took her name because the family had no male heirs. In world where many people hope to retire as soon as possible, he's worked for the same automaker for the last 50 years, including stints as company president from 1978 to 2000 and 2008 to the present. Investors aren't questioning the president's ability as a business leader; they just want a clearer understanding of the automaker's future direction.

205k Suzuki models being investigated for airbag sensor issue

The Detroit News is reporting that the National Highway Traffic Safety Administration has opened an investigation on the 2006-11 Suzuki Grand Vitara and 2007-11 Suzuki SX4 due to issues with the airbag and seatbelt for the front passenger seat. So far, NHTSA has received 128 complaints on these vehicles for airbag warning lights, airbag off lights and seatbelt lights, on a vehicle set that totals around 205,000 units, but there is no indication as to how many, if any, injuries have reported.
Via technical service bulletins, Suzuki has already acknowledged two airbag-related issues with front passenger seats on both vehicles, including a programming error for the passenger seat load indicator on 2009 models and an open-circuit problem for the sensor mat that determines if an adult or child is sitting in the front seat. Since this latter issue would not shut off or lessen the impact of the passenger airbag, Suzuki has already extended the warranty for the seat cushion bottom to 10 years or 120,000 miles. After ceasing new-car sales in the US and Canada, potential recall repairs (which still may or may not happen) would be handled by remaining dealers as laid out in the recent court-approved bankruptcy plan.

American Suzuki gets $100M in financing to go out of business... buy more cars?

American Suzuki Motor Corporation (ASMC), which declared bankruptcy in early November, has been approved by the courts for up to $100 million in debtor-in-possession financing to enable it to shutter its US car business. ASMC had received a $45 million loan from the Japanese parent company, Suzuki Motor Corporation (SMC), last month in order to make repayment deals with its franchise dealers. At the same time, ASMC was awaiting final court approval of this larger loan.
Out of the newly approved funds, $50 million can be used for operations, and oddly, the other $50 million can be put toward purchases of new inventory from SMC. That's right, even as existing inventory was headed for a smooth exit with the help of incentives, customer demand for orphan Suzuki models is so strong - last month's sales were up 22 percent compared to 2011 - that ASMC plans to purchase 2,500 additional cars from SMC that were built after the bankruptcy announcement. Good news for the owners of those vehicles: the top 50 dealers, representing more than 98 percent of ASMC sales, will become parts and services centers.
The press release below has more information. Unlike its recent tenure here, the end of Suzuki cars in the US looks like it's going rather well.