Participating in an auto show is an expensive business. To rent the right amount of space for your display, then have a stage constructed to represent the brands image, plus hiring all the staff needed at the booth to answer questions from the public. It's all a very big and expensive affair which can easily cost up to $1-million per show.
All this is fine when the company is making tons of money, but when a company is in the red, spending lavishly at an auto show is not the smartest thing to do.
Take Suzuki for example. Back in 2007, it was selling 100,000 vehicles in the States per year. Last year, that number was down to less than a quarter of that at 23,994 units.
While Suzuki sales are up slightly this year, but not by much, and it looks as if the brand will not have a great year ahead of them either. To save money, Suzuki has decided to skip the upcoming L.A. Auto Show, and will also skip the North American International Auto Show in January.
Suzuki's spokesman Jeff Holland said; "For the upcoming season, our brand will selectively participate at auto shows where our distinctive and engaging story will resonate the most.
Apparently Suzuki's story does not resonate with the California crowd, as only 430 new Suzuki's were sold in the sunny state.
Part of the reason Suzuki has been struggling is because of the strength of the Japanese Yen compared to the Dollar. Apart from the Equator pick-up truck, all the Suzuki models are built in Japan, and the unfavorable exchange rate is hurting them very directly.
In its home market, Suzuki is still a very brand and the most popular new car sold in Japan is the Suzuki Wagon R, plus their motorbike division is among the most successful in the industry on a global scale.
More: Suzuki To Skip L.A. And Detroit Auto Shows on Autoguide.com