American Suzuki vs. Consumer Reports Libel Suit Takes Interesting Twist

Photos

In a battle that has dragged on for nearly two decade, American Suzuki will once again take Consumer Reports to court over the magazines critical report of its 1988 Samurai. (Photo: truckworld.com)

The Samurai, which was introduced in 1985, sold well over its first three years but according to American Suzuki, never recovered after the Consumer Reports article. (Photo: zukiworld.com)

Suzuki claims that the negative CR review continues to affect their image and the publics perception of its products. Some auto analysts say its Suzukis inability to let the issue rest that continues to plague its brand identity. (Photo: truckworld.com)

"Whats crazy is that Suzuki cant win, even if it prevails in court," stated Automotive News journalist Edward Lapham.(Photo: truckworld.com)

Is Suzuki as Its Own Worst Enemy, Tarnishing Its Own Image by Dredging Up Negative Past?

Exactly what American Suzuki Motors Corp is attempting to accomplish by continuing its tri-decade lawsuit with consumer goods testers Consumer Reports (CR) is difficult to comprehend. Unless the execs at the Japanese automaker truly believe the age-old adage that any publicity is good publicity, dredging up the high-probability that its 1980s era 4×4s suffered from a tendency to tip over during accident avoidance maneuvers isnt very good for its brand image.

The reality is, Suzuki wasnt the only SUV manufacturer that faced negative press after independent testing raised concerns over high-speed stability, with Isuzus Trooper, for one, shown on TV repeatedly rolling over onto its “training wheels,” the contraptions automotive testers use to make sure when a vehicle pops up on two wheels it gets a shove back onto all four.

According to CR a similar occurrence happened to a Suzuki Samurai being tested, prompting the magazine to critique that the sport utility “easily rolls over in turns.” American Suzuki claims that CR set the vehicle up to fail rollover tests; a ploy the automaker believes was designed for publicity purposes, with an end to increase newsstand sales and membership revenue.

The automaker claims that CR set up a slalom course more difficult to negotiate than the vehicles rival SUVs, and then tested it on its own. Suzuki goes further to state a belief that the competitive vehicles were not tested on the same circuit, but one that was easier to maneuver around.

CR claims that only one slalom course was used for all four SUVs tested in this instance, and that each ran at exactly the same speed multiple times. The magazine initially reported that its tests resulted in the Samurai tipping “up briefly and severely.” According to CR the rival SUVs did not display any severe stability problems.

If the upcoming court appearance was the first time the two companies faced each other before the law it might seem that Suzuki has a case, but making the same libelous claims Suzuki brought CR before the courts in the late 90s but their grievance was thrown out due to a lack of evidence.

Suzuki claims that the negative CR review, that goes all the way back to 1988, continues to affect Suzukis image and perception of its products. While some analysts believe that Suzuki is currently its own worst enemy, by keeping a negative issue that would no doubt have been forgotten a decade or so ago alive in the headlines, the automaker continues to remind its public that its SUVs may not be safe.

Automotive News journalist Edward Lapham stated what many believe to be obvious in a recent column, saying, “Whats crazy is that Suzuki cant win, even if it prevails in court. If Suzuki loses, the case will damn the Samurai. Suzuki will have wasted millions in legal fees defending a product it no longer sells. It will have succeeded in again dragging its own brand through the mud in a courtroom - and the press - just as it is gearing up to triple its annual US sales to 200,000 in 2007. Most Suzuki buyers dont remember the Samurai. Many werent even in school when the review ran in Consumer Reports. But this lawsuit and the publicity it engenders will make sure that everyone knows. And even if Suzuki prevails, who will believe the automaker anyway? Either way, Suzuki and its dealers are losers.”

Its important to note why Suzuki might be paranoid. After all, this type of lawsuit has happened before. Popular prime time TV news show 60 Minutes was found guilty of rigging an Audi 5000s accelerator pedal to portray “unintended acceleration,” a ploy that cost the German automaker severely. Rival TV news series 20/20 faced similar scrutiny with its GM pickup truck gas tank explosion fiasco. CRs record is thus far untarnished.

CRs publisher, Consumers Union, put forth an argument that the Japanese automaker had little evidence to back up the libel case, and that it should be thrown out of court. The court, nevertheless, refused to block Suzukis lawsuit, therefore it continues.

To be fair, Suzuki had a right to be upset at CRs report. The Samurai, which was introduced in 1985, sold well over its first three years to the tune of approximately 150,000 units. In 1987 it reached its peak, selling about 80,000. But after CRs report American Suzuki never completely recovered in North America. Suzuki claims it suffered losses exceeding $60 million since the report.

Until a court decision is reached, Suzuki will continue to be seen by many consumers as an automaker that isnt willing to take blame for a problem that CR was merely helping consumers become aware of. Of course the negative press hurt the brands SUV sales, as does any negative report written by any publication anywhere.

If Suzuki manages to persuade a new judge that its case is in fact relevant, and that it deserves compensation for lost sales, then the process may set a dangerous precedent that could bias consumer goods reporting in the future. What publication would want to risk possible annihilation by a disgruntled manufacturer after one of its products receives a negative review?

This argument was featured in the current (March) issue of CR, in an article that asks its readers to voice their concerns by writing to the president of American Suzuki Corp.

It doesnt look as if any number of concerned consumer opinions will throw American Suzuki off of its determined course however, a path that will no doubt continue to prove extremely costly to both parties, and in the end only tarnish the Japanese brands image further.

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