Osamu Suzuki, Former Suzuki Chairman Passes Away Aged 94

Osamu Suzuki, the long-serving chairman and CEO of Suzuki Motor Corporation, passed away at the age of 94 on Christmas Day 2024. Widely credited for transforming Suzuki into a global automotive powerhouse, he played a pivotal role in revolutionizing the Indian car market. Known for his frugality and astute business acumen, Suzuki was also a man with a profound personal commitment to the company he led for over four decades. His death marks the end of an era for Suzuki, a company that he meticulously shaped into a global leader in small cars.

A Legacy of Frugality and Innovation

Suzuki was renowned for his thriftiness, an attribute that became legendary in the corporate world. He was a meticulous cost-cutter who believed in keeping operations lean. This quality not only helped Suzuki Motor Corporation grow but also earned it the reputation of being one of Japan’s most efficient automakers. Under his leadership, Suzuki was known to make extreme cost-saving decisions, such as ordering factory ceilings to be lowered to reduce air-conditioning costs, and flying economy class even into his advanced years. His philosophy was clear: every penny counted.

Suzuki’s Leadership and Vision

Born Osamu Matsuda in 1929, Suzuki took on his wife’s family name through adoption, a common practice in Japan where families lacking male heirs adopt the surname of the wife’s family. He joined Suzuki Motor in 1958 after his banking career, marking the start of his journey with the company. Over the next two decades, Suzuki steadily climbed the ranks, eventually becoming the company’s president in 1978.

It was during the 1970s, when Suzuki was faced with near bankruptcy, that his business acumen shone through. At that time, the company was struggling to meet stringent emission regulations in Japan. Suzuki secured an essential partnership with Toyota Motor Corporation, convincing them to supply engines that would help Suzuki comply with the new regulations, saving the company from potential collapse. This successful maneuver demonstrated his ability to leverage partnerships to secure the company’s future.

The Alto and the Birth of a Global Vision

One of the most significant achievements during Suzuki’s early years was the launch of the Alto in 1979. The Alto, a 660-cc, minivehicle designed to be affordable and fuel-efficient, became an instant success. The Alto set the stage for Suzuki’s dominance in the small car market, not just in Japan but globally. This model helped Suzuki become synonymous with affordable, reliable cars. The Alto’s success also strengthened Suzuki’s bargaining power and paved the way for an important collaboration with General Motors in 1981.

Osamu Suzuki’s Bold Investment in India

One of Suzuki’s most groundbreaking decisions came in the 1980s when he set his sights on the Indian market, then a backwater for automobiles. India’s annual car sales were under 40,000, and the country was still heavily reliant on British knock-offs. Despite this, Suzuki saw potential in the Indian market and made a bold move: he invested a year’s worth of Suzuki Motor’s earnings to establish a national carmaker in India. His desire to be “number one somewhere in the world” drove this significant decision, reflecting his strategic mindset.

At the time, Maruti Udyog had already been established by the Indian government under the guidance of Sanjay Gandhi, the son of then-Prime Minister Indira Gandhi. The aim of Maruti was to create an affordable “people’s car” for India, but it lacked a foreign partner. Early talks with Renault fell through when their proposed car model was deemed too expensive for the Indian market.

In a twist of fate, it was an article in the newspaper about Daihatsu, Suzuki’s competitor, potentially partnering with Maruti that led to Suzuki’s interest in Maruti Udyog. Upon learning that Maruti had been rejected by other foreign manufacturers, a Suzuki Motor director urgently contacted Maruti, leading to a collaboration between the two companies.

The Launch of Maruti 800: A Turning Point

This partnership led to the Maruti 800, a compact, affordable car that was based on the Alto. Launched in 1983, the Maruti 800 quickly became a revolutionary success. It was the first car for millions of middle-class Indians and helped transform the country’s automotive landscape. Maruti Suzuki, as the joint venture came to be known, still holds about 40% of India’s car market today.

Suzuki’s entry into the Indian market was not just about selling cars; it was about creating a cultural shift. In the traditionally class-conscious India, Suzuki introduced egalitarian practices within Maruti, insisting on open-plan offices, a single canteen, and uniforms for both executives and assembly-line workers. This move broke down barriers between different classes of workers and helped instill a sense of unity within the company.

Challenges and Triumphs: Volkswagen Partnership

Despite the tremendous success, not all of Suzuki’s ventures were smooth. In 2009, Suzuki struck a multi-billion-dollar deal with Volkswagen in what was hailed as a “match made in heaven.” However, the partnership soon began to falter. Suzuki accused Volkswagen of attempting to take control of Suzuki, and VW, in turn, objected to Suzuki’s purchase of diesel engines from Fiat. The tensions led to a legal battle, and within two years, Suzuki succeeded in buying back Volkswagen’s stake. This event marked one of the few setbacks in Suzuki’s otherwise successful career.

The Passing of the Baton

In 2016, at the age of 87, Suzuki passed on the role of CEO to his son, Toshihiro Suzuki, and transitioned to the position of chairman. Despite stepping down, Osamu Suzuki remained closely involved with the company, offering advice and guidance until he fully retired at the age of 91. Throughout his career, he often quipped that he would remain with Suzuki “forever” or “until the day I die,” demonstrating his unwavering commitment to the company.