Cami Automotive Inc. Begins Exclusive Production of Two New Economy Cars

Strategic Insights -

Cami Automotive Inc.'s joint venture plant in Ingersoll, Ont., has started producing two new economy cars, the Geo Metro and Suzuki Swift, exclusively for North America. The plant, a joint venture between General Motors of Canada Ltd. and Suzuki Motor Corp., has been assembling Suzuki-designed small cars and sport utility vehicles since 1989. Last year, the plant produced 165,000 units, primarily for General Motors, with over 80% being exported to the United States.

Key Takeaways:

  • The Cami Automotive Inc. plant in Ingersoll, Ont., has started producing two new economy cars, the Geo Metro and Suzuki Swift, exclusively for North America.
  • The plant, a joint venture between General Motors of Canada Ltd. and Suzuki Motor Corp., has been assembling Suzuki-designed small cars and sport utility vehicles since 1989.
  • The new cars were designed for North American customers, with a focus on styling and value, and are set to be built only in Ingersoll, Ont., not in other Suzuki plants.
  • Cami's capacity for the new cars is 120,000 units per year, with a potential for export sales beyond Canada and the United States.
  • The plant also produces trucks, such as the Geo Tracker and Suzuki Sidekick, with an export capacity of 80,000 units per year to Russia, Egypt, and South Korea.
  • GM Canada has priced the 1995 Geo Metro and Pontiac Firefly sedans at $10,995 and the hatchback coupe at $9,995.
  • The new cars are considered vital entry-level products, which will allow General Motors to gain new customers among first-time buyers.

Statistics:

  • 165,000 units produced at the Cami plant last year, primarily for General Motors
  • 80% of the plant's output from last year was exported to the United States
  • 120,000 units per year capacity for the new cars
  • 80,000 units per year capacity for trucks, such as the Geo Tracker and Suzuki Sidekick
  • 95,000 Metros sold in the U.S. market in 1992 and 1993
  • 3% decline in volume for the first half of 1994 against a total market sales gain of almost 11%
  • 3,500 units sold in the first half of 1994 in the Canadian market

Sources:

  • "Ingersoll plant to make Geo, Suzuki models", The Globe and Mail.