The Auto Writer

Currently based on GM's Theta platform, the Suzuki XL7 is a seven passenger sport/utility vehicle. First introduced in 2001, the SUV acquired the GM platform beginning with the 2007 model year, but its future as a Suzuki vehicle is now in doubt.

The sport/utility vehicle (SUV) market has been disintegrating since gas prices peaked above $4/gallon last summer. Though prices have since retreated, the current economic climate has done nothing to reinvigorate sales especially for those models of minimal interest.

The Suzuki XL7 is one such vehicle, a compact seven passenger SUV built on the same platform that powers the Chevrolet Equinox. Both vehicles are built by CAMI Automotive Inc., which is a joint GM-Suzuki enterprise situated in Ingersoll, Ontario, Canada.

Two Million Plus CAMI Vehicles

For twenty years CAMI (Canadian Automotive Manufacturing Inc.) has been building various models including the Suzuki Sidekick, Pontiac Torrent, Chevy Tracker, Pontiac Firefly and Chevy Metro, among other vehicles. In 2006 the  two millionth vehicle was rolled off of CAMI’s assembly line.

2009 will be the last year for the Pontiac Torrent as that model has been replaced by the GMC Terrain which itself is a badge-engineered version of the next generation Chevy Equinox. The comparable Suzuki XL7 hasn’t been canceled, but the vehicle has been put on indefinite hold according to an article posted in yesterday’s issue of Automotive News. So far this year only four units of the XL7 have been produced, down from 12,407 built in 2008. The XL7 represents the only Suzuki model built in North America.

Waiting and Seeing?

Although Suzuki management says that they are committed to CAMI and to maintaining their alliance with General Motors, that relationship could unravel should GM file for bankruptcy as it is expected to do by the end of this month. Suzuki is insistent that they are fully committed to CAMI, but GM’s piece of the puzzle could impact what becomes of that arrangement.

Suzuki is by far the smallest Japanese automotive retailer in the US, having taken over the bottom rung since Isuzu quit selling passenger vehicles in January. According to Autodata Corp., a source of custom automotive statistical data, market intelligence and analysis for the automotive industry, year to date U.S. sales for Suzuki are off by 51%, representing the worst drop of any full line manufacturer.

Through April 2009, Suzuki has sold just 17,674 passenger vehicles, but its decline in April was particularly noteworthy, falling 73.7% over April 2008.  This despite the company having more compact vehicles to sell than most other manufacturers as the XL7 represents the largest vehicle in its fleet.

Photo Credit: American Suzuki Motor Corporation

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