Suzuki to splurge on new factory
Thursday, October 18th, 2007Suzuki Motor Corp, the nation’s second largest manufacturer of mini-city cars, said Tuesday it will be nearly double spending on a factory in the Shizuoka Prefecture, as she adds, diesel engine production and buy more land.
The automobile manufacturers spend ¥ 187.9 billion on the factory, compared with an earlier plan to invest 96 billion ¥, spokesman Shigeyuki Yamamura said. The construction of the plant was first announced in August.
Suzuki invested, as the demand for small cars is increasing despite higher fuel prices costs. Hamamatsu-based manufacturer of the car is betting compress like the Swift and SX4 win customers both at home and in the growing markets in India and Europe, where diesel vehicles account for more than half of the market.
“The new investment amount highlights Suzuki’s aggressiveness,” said Shinya Naruse, an auto analyst at Nomura Securities Co. “diesel engines for Japanese car manufacturers such as environmental regulations tighten.”
Diesel engines emit about 20% less carbon dioxide than gasoline engines. But particles of engines, the high-sulfur diesel aggravates asthma and other respiratory problems and creates more smog, according to the United States Environmental Protection Agency.
Suzuki is diesel engines crowned in the plant, which has an annual production capacity of 260,000 units. The automobile manufacturer will also acquire land for parts suppliers and the construction of a delivery center in the vicinity of the plant, Suzuki’s Yamamura said.