Partnership Ends between Suzuki Japan and Prince Motors of Taiwan

Taipei, Jan. 4, 2012 (CENS)--The protracted financial woes of Prince Motors in Taiwan has come to a head: the 22-year partnership between Prince Motors and Japanese technical partner Suzuki Motor Corp. recently ended, on which the Taiwanese partner has not commented.

Suzuki Japan will acquire the 20% share held by Prince Motor in Taiwan Suzuki Automobile Corp., the local agent of locally produced and imported Suzukis, to fully own the subsidiary, as well as sever all ties to Prince Motors, which will soon reciprocate. The termination of partnership is to be finalized soon.

According to Taiwan Suzuki, Prince Motors used to be the largest distributor and assembler of Suzukis on the island, so its financial problems may damage local sales. Taiwan Suzuki originally aimed to sell some 6,000 Suzukis in Taiwan in 2011, but moved only 4,500 units.

Taiwan Suzuki executives said the company has stopped delivery to Prince Motors, will rebuild sales network on the island, plans to raise the number of dealership to 30 from 12 in 2012 and challenge annual sales of 7,000 units.

Since Prince Motors' financial woes, Taiwan Suzuki had stopped contracting the local partner to produce Suzukis, hence turning the Suzuki brand into a full import. Taiwan Suzuki said that, if sales recovers to exceed 10,000 units in Taiwan, it will reconsider contracting a local automaker to assemble Suzukis.

Some automakers believe that even amid financial problems, Suzuki sales in 2011 still reached 4,500 units, which suggests the brand's popularity on the island.