Suzuki suspended Jimny's sales in Europe (and this is good news for Argentina)

[snapple.]

"Who killed Suzuki Jimny?" "Is this the biggest scam in the history of the automotive industry?" Catastrophic headlines multiply these days in Europe, but it is necessary to clarify two things: nobody killed the small Japanese all-terrain . Keep alive and kicking. And the scams at the moment were registered only in some dealers in Spain.

The Jimny is one of the biggest commercial successes of the moment. And this event was unexpected. Suzuki never imagined that this little one, although nice, slow, although funny, and uncomfortable, but charming, 4 × 4 would become one of the most desired cars on the planet. Until last year, global demand came to quadruple the production capacity of the only plant that manufactures it, in Japan.

The scandal - which despite the headlines catastrophe, is limited only to Europe - occurred for two reasons.

1. Environmental regulations: In January 2021, a new emission regulation will begin to apply in the European Union that will establish a maximum average of 95 grams of CO2 per kilometer for each brand. The Jimny emits 154g / km (with manual box) and 170 g / km (automatic). This raises the average pollution of the entire Suzuki range and the Japanese brand decided to suspend sales, before risking receiving a fine that could exceed 400 million euros. Suzuki is already working on an alternative and cleaner engine for the European market, but its development does not seem to be a priority: in the rest of the world the demand for Jimny is still very active and even without Europe the production capacity is exceeded . The possibility of expanding the production line in Japan or starting to manufacture it in India is also analyzed, together with its historical ally Maruti.

2. Unfulfilled reservations: Suzuki dealers in Spain made money reservations for Jimny, even though it would be difficult to deliver. Now that sales have been suspended and that customers know they will not receive their units, there are dealers who are reluctant to return deposits. It is a "Door Effect 12". To calm the most irritated customers, sellers offer other models of the brand in return, but not everyone is accepting. The lawsuits have begun. That is why there is talk of "scam".

These two situations do not affect the Argentine market. Paradoxically, they even benefit him. By decompressing demand in Europe, Suzuki will be able to supply other markets that were receiving the Jimny in droppers. In 2019, 12 units were patented in Argentina and the arrival of a new shipment is expected, where most of those vehicles already have an owner.

In April 2019, when the presale was launched in Argentina, the Inchcape importer applied a more transparent strategy than other European dealers: “I want to point out that the model is in presale, but we will not take money reserves, because we want to be certain of the shipment of the units, their VIN, etc. We are writing down the interested parties in order of arrival and we will call them as soon as we have specific information ”, announced Mauricio Sepúlveda.

Sepulveda was at that time the general manager of Inchcape. He is a Chilean executive with extensive experience in Japanese brands (in 2019 he managed to make Subaru and Suzuki grow in their participation in the domestic market, amid the debacle of the Argentine sector) and today he finds new directions within the industry, where he is He considers a valuable consultant, specialized in the culture of oriental companies.

Beyond the controversy that exists in Europe, this turbulence with Jimny could end up benefiting those who already signed up on that list in Argentina: it is possible that delivery times will accelerate, which in some cases reach up to a year .

Although, as it is about Argentina, there is always a “but” that obscures everything. With the appearance of the new internal taxes, decreed by President Alberto Fernández in December, Jimny was positioned on the other side of the tax base. It is possible that the next shipments will already be nationalized by taxing this new tax. And with an increase in its price, for the new tax burden

 

Mauricio Sepúlveda, until last year general manager of Inchcape Argentina, outlined the commercial strategy of Jimny in our country, to avoid the “Door Effect 12” that is currently lived in Europe.

Autoblog already tested Suzuki Jimny.