Auto Industry

Topics: Suzuki, Suzuki Cultus, Pak Suzuki Motor Pages: 13 (2815 words) Published: May 4, 2013
1.The Environment of Business

A system is one, which has interrelated parts and functions as a whole. The human body, galaxial and economic systems are some common examples. Similarly, there are several departments in a business organization, which are all interrelated and the organization functions as one system. Like other business organizations, Pak Suzuki functions as one system and there are several departments working in the organization

1.2.Company Profile
Pak Suzuki Motor Company Limited (PSMC) is a public limited company with its shares quoted on Stock Exchanges in Pakistan. The company was formed in August 1983 in accordance with the terms of a joint venture agreement concluded between Pakistan Automobile Corporation Limited (PACO), representing Government of Pakistan and Suzuki Motor Corporation (SMC) – Japan. The Company started commercial production in January 1984 with the primary objective of progressive manufacturing, assembling and marketing of Cars, Pickups, Vans and 4x4 vehicles in Pakistan.

The foundation stone laying ceremony of the company’s existing plant located at Bin Qasim was performed in early 1989 by the Prime Minister then in office. By early 1990, on completion of first phase of this plant, in-house assembly of all Suzuki engines started. In 1992, the plant was completed and production of the Margalla car commenced. Presently the entire range of Suzuki products currently marketed in Pakistan are being produced at this Plant.

Under the Government’s privatisation policy, the company was privatised and placed directly under the Japanese management in September 1992.

At the time of privatisation, SMC increased its equity from 25% to 40%. Subsequently, SMC progressively increased its equity to 73% by purchasing remaining shares from PACO. The total foreign investment brought in by SMC – Japan since inception stands at Rs.1027 million.

The Suzuki Management immediately after privatisation started expansion of the Bin Qasim Plant to increase its installed capacity to 50,000 vehicles per year. The expansion was completed in July 1994. Keeping this in view, the company’s long term plans inter-alia includes tapping of export markets. The company acquired additional land measuring about 30 acres from Pakistan Steel Mills Corporation in proximity to its Bin Qasim Plant to set up production facilities for manufacturing of some local components by vendors. During the year 2003, land was sub-divided into eighteen plots and has been offered to vendors for sub-lease.

The company continues to be in the fore-front of automobile industry of Pakistan. Over a period of time, the company has developed an effective and comprehensive network of sales, service and spare parts dealers who cater to the needs of customers and render effective after sales service country wide. PSMC is serviced by over 172 active vendors who are engaged in the local manufacturing and supply of automotive parts to the company.

1.3.Business Ecology

Production Facilities
The production facilities in the plant are integrated and comprise of the following:

a)Press Shop:
The press shop consists of most modern stamping facilities equipped with a tandem press line. It distinguishes Pak Suzuki from the other automobile plants. The press shop constitutes a major investment in machines and dies and has contributed in the high level of localization achieved in Suzuki vehicles. This shop manufactures body components for whole range of Suzuki products.

b)Welding Shop:
It caters for welding of Suzuki range of vehicles comprising 07 models. The process consists of welding of panel parts to complete body shell through technically advanced spot welding and CO2 welding process.

c)Paint Shop:
Having most modern conveyorised painting facility including state-of-the-art Cathodic Electro-Deposition System. All transfers are automatic and spray final coat is carried out in very sophisticated...
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