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Local sourcing builds Suzuki

The winner of the HIPA Local Partnership award talks about his satisfaction with Hungrian suppliers.

At the Expat CEO gala on January 22, Suzuki CEO Naoyuki Takeuchi received the HIPA Local Partnership award, which recognizes his efforts to use Hungarian suppliers. Formerly in charge of purchasing for Suzuki Hungary – the country’s oldest automotive factory – Takeuchi (pictured) is clearly in tune with the Hungarian market.

During his acceptance speech at the awards gala, he spoke about his company, and his experiences with working in Hungary. The following is an excerpt from his speech that night:

“It is an honor for me to receive this award!

“The Hungarian plant of Suzuki, in Esztergom, was built 25 years ago and has turned out more than 2.5 million cars since then. The plant is the third largest Suzuki factory in the world, employing a staff of 3,100. The plant is 25% supplied by Hungarian firms. If you measure by the value of parts supplied, almost 50% are from a Hungarian source, which makes Suzuki the top company among Hungarian car manufacturers when it comes to sourcing locally.

“Approximately 80 Hungarian suppliers employ a total of 30,000 families, and without these suppliers, Suzuki would not have become the company it is today, turning out Swift, Swift  Sport, S-Cross and Vitara.

“As a Japanese manufacturer, reliability and precision are very important for us, and we experience this with our Hungarian colleagues and partners every day. Our products are being developed and manufactured along this philosophy.

“A great example of this is the Vitara, which has the biggest Hungarian added-value, both in terms of manufacturing and development: The prototype was almost entirely put together in this country.

“Suzuki sold 7,500 cars due to Vitara’s popularity and growing fleet numbers, raising its market share to almost 10% in the Hungarian personal car market.”