Suzuki Small Cars for U.S.

CARLSBAD, CA – Suzuki Motor Corp. plans to use its successful Swift global small-car platform to gain inroads in the U.S.

Exhibit A: The all-new Suzuki SX4 debuts for ’07 as a compact cross/utility vehicle with standard all-wheel drive. It rides on a stretched Swift platform.

Exhibit B: Suzuki is designing the next-generation Swift to meet U.S. specifications, and the B-segment car could be sold in North America in 2010, likely in multiple body styles.

“I’m glad U.S. customers are accepting smaller vehicles,” Koichi Suzuki, president-automotive operations for American Suzuki Motor Corp., says at a press event here for the SX4 and XL7 CUVs.

Koichi Suzuki says the auto maker still is studying what body styles of the Swift to bring to the U.S. More than one body style is being studied.

Meanwhile, the new SX4 – the name stands for (S)port (X)over for (4)-season driving – for North America went into production June 1 in Kosai, Japan. The base model goes on sale Sept. 1 in the U.S. with the Sport trim level available in November.

In the U.S., the 5-door SX4 sporty hatchback replaces the Aerio SX, a 5-door CUV that was discontinued in May, Koichi Suzuki says.

The Suzuki SX4 offers standard all-wheel drive.

The auto maker continues to offer an Aerio sedan for ’07, while deciding whether to replace it with an SX4 sedan, Koichi Suzuki tells Ward’s.

If the SX4 is well received as a 5-door, expect the sedan in the near future, says Osama Honda, SMC chief engineer for the SX4. “We’re working on that.”

Honda says no body styles beyond the hatch and sedan are planned for the U.S.

The SX4 already is on sale in Europe, supplied from the new Magyar Suzuki Corp. plant in Hungary.

It is being well accepted, and the auto maker has equally high hopes for the U.S.

But capacity constraints at the Kosai plant are limiting production of SX4s for the U.S. to 1,000 a month, Honda says.

The SX4 for the U.S. market is longer, wider and 2-3 ins. (5-8 cm) taller than other hatches in the segment, Honda says, providing command seating and giving it a more substantial presence on the road.

About 30% of the CUV is common with the Swift, the engineer says, including much of the frame, suspension, seats and components from the parts bin such as switches and door handles. The design concept also takes cues from the Swift.

The powertrain differs. For the U.S., the SX4 shares the 2.0L DOHC 4-cyl. engine in the Grand Vitara in Europe, putting out 143 hp and 136-lb.-ft. (184 Nm) of torque.

The powerplant is smaller, for packaging in the small car, but is less powerful than the 2.3L DOHC I-4 that was in the Aerio and produced 155 hp at 5,400 rpm and offered its peak torque of 152 lb.-ft. (206 Nm) at a low 3,000 rpm.

Officials argue the SX4 still is more powerful than most of its competitors:

The Nissan Versa’s 1.8L 4-cyl. was making a class-leading 122 hp and 127 lb.-ft. (172 Nm) of torque until the advent of the SX4. The SX4 also betters the Toyota Corolla and Matrix and Honda Civic in terms of power.

The 2.0L in the SX4 is mated to a 5-speed manual or 4-speed automatic transmission.

“At the start of development of the SX4, we wanted a reasonably priced, basic car and thought it was enough to have a 4-speed,” Honda says.

A 4-speed still is sufficient for the entry-level base model, but he tells Ward’s he already can see the need for a 5-speed automatic for higher trim levels for a dynamic performance car.

Honda says he expects the segment will demand 5-speed automatics in the next two or three years.

“We know we need 5- or 6-speeds in the future for models,” Honda says. “Four-speed is not enough today and for tomorrow. We are studying it.”

He says he expects the situation to be remedied in the 2008-2009 timeframe.

The SX4 also offers standard all-wheel drive, making it unique in the segment.

It has an estimated fuel economy rating of 24 mpg (9.8 L/100 km) in the city and 30 mpg (7.8 L/100 km) on the highway.

Gene Brown, ASMC vice president-marketing and public relations, says the SX4 enters a fast-growing segment, up 53% since 2004, and poised to expand 60% in the ’07 model year with the addition of so many new subcompacts and compact cars.

Officials say the new SX4 should not cannibalize the Suzuki Reno 5-door as it is not a lifestyle vehicle designed to go off-road. The Reno also is designed for a lower pricepoint: an entry-level model for a more economy-minded buyer.

But Brown says the SX4 should be the most affordable AWD in the U.S. for ’07, “unless there is a pricing announcement coming we don’t know about.”

The SX4 starts at $14,999 for the base model (not including $595 destination charges). Add $1,400 for the Sport trim level, and there are packages such as Convenience Control (cruise control, steering wheel controls, automatic temperature control) for $300.

Accessories should prove popular with SX4 buyers, expected to be mostly single men, aged 18-30, 35% college-educated and with an average household income of $50,000.

Likely in the cards is a future SWT SX4, referring to a Suzuki Works Techno performance styling package for the SX4.

Marketing executives are pushing for a SWT package, but Honda says the auto maker must be mindful of its limited resources at a time of expansion. He does say a SWT SX4 is in keeping with the brand image the auto maker is working to establish. “We need to develop such kinds of high-performance models.”

Meanwhile, Suzuki announces pricing for the all-new ’07 XL7 midsize CUV that goes on sale Nov. 1 in the U.S.

A 5-passenger base model starts at $22,899, while the 7-passenger XL7 begins at $24,249 (excluding $635 destination charges).

The Luxury trim level starts at $24,599 and Limited begins at $27,949.

[email protected]