Business

Japanese authorities conduct raids on Suzuki HQ

3 Jun 2016 | By Ramya

Authorities in Japan have reportedly raided Suzuki Motors' headquarters as a part of their ongoing investigation into the company's use of improper fuel economy tests.

Authorities were looking for documents that would support the fact that Suzuki didn't mean to deceive its customers.

In May 2016, Suzuki had stated that it found discrepancies in fuel emission tests but added that it wasn't cheating.

In context: Suzuki Fuel Economy scandal

Introduction About Suzuki Motors Corporation

The Japan based Suzuki Motor Corporation was founded in 1909 by Michio Suzuki.

Suzuki's headquarters are in Minami-Ku, Hamamatsu, Japan; it manufactures four-wheel drive vehicles, automobiles, motorcycles, ATVs, outboard marine engines, internal combustion engine varieties, and wheelchairs.

In 2011, Suzuki became the tenth biggest automaker by worldwide production; it has 35 production facilities in 23 nations and distributors in 192 countries.

Subsidiaries of Suzuki Motors

Subsidiaries of Suzuki Motor Corporation: Maruti Suzuki India Limited (Formerly knows as Maruti Udyog Limited), American Suzuki Motor Corporation, Pakistani Suzuki Motor Company Limited, Suzuki Canada Inc., and Suzuki GB PLC.
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Suzuki apologizes for improper fuel tests

May 2016Suzuki apologizes for improper fuel tests

Suzuki had admitted that it had used improper methods to tests its vehicles.

According to Suzuki, it had used improper mileage tests since 2010 on at least 16 models, which were being sold in Japan.

The company apologized for not using a method approved by Japanese regulators on at least 2.1 million vehicles.

It added that mileage data revision wasn't necessary for those vehicles.

Management didn't have firm grip on R&D proceedings

Suzuki CEO-Osamu Masuko said, "Top management did not have a firm grasp on the proceedings at the R&D department." He added that there were many chances for Suzuki to stop its workers, but it didn’t.

3 Jun 2016Japanese authorities conduct raids on Suzuki HQ

Suziki's StatementFuel emission issue didn't apply outside of Japan

Suzuki stated that the fuel emission issue didn't apply to its products that were sold outside of Japan.

Earlier this week, Suzuki released a statement to clarify why it had failed to use methods to test fuel emission that complied with Japanese regulations.

It stated reasons for failure on its part to invest in required infrastructure and also because of a lack of manpower.

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Fourth largest car company in Japan

In Japan, Suzuki Motor Corporation is reportedly the fourth largest car maker succeeding Toyota, Nissan, and Honda. After the news of Suzuki’s raid had broken out, the company’s shares fell by almost 1% on Tokyo Stock Exchange.

Other CompaniesOther car companies raided

Suzuki wasn't the first car company to be raided by the Transport Ministry of Japan.

Mitsubishi Motors' offices were raided, it had admitted to falsifying its fuel economy data; later Mitsubishi President had stepped down.

In 2015, Volkswagen had admitted to cheating on its emission tests in the US; it had used cheating software that could alter emission levels for better results.