Visions - Fall 2011 - (Page 9)

MACHINERY AND POWER Summit Motor Management Acquires Lexus Dealership SCOA Adds Luxury Automobiles In Latest Automotive Retail Venture L exus (a division of Toyota) has long represented the finest in luxury for those in the automotive world. First introduced in 1989 in the United States, Lexus is now sold globally and has become Japan’s largest-selling make of premium cars. The Lexus is marketed in over 70 countries and territories worldwide, and has ranked among the 10 largest Japanese global brands in market value by global branding consultancy Interbrand. “The addition of the Lexus brand will help us build a stronger portfolio of brands,” Hironobu Shibata, Automotive Business Manager for Summit Motor Management elaborated, “as this is the first luxury brand we have purchased in many years.” SCOA recently purchased a Union City, Georgia-located Lexus dealership in June of this year, a location that generated $70 million in annual sales last year, moving over 2,000 new and pre-owned/certified cars onto the roads in 2010. The new goals for this, Summit Motor Management’s newest acquisition, include building on the strength of the dealership’s customer satisfaction rating as well as expanding business development and increasing profitability, according to Hironobu Shibata, Automotive Business Manager for Summit Motor Management. “The acquisition of this dealership was a vital move for SCOA and the Automotive Business Unit to reestablish a firm foothold in the automotive industry,” Shibata said. “The U.S. automotive industry has shown gradual and consistent improvement during the last few years. As a result of our careful market research and feasibility studies, we are confident that this investment will give us the advantage to re-enter the automotive retail market ahead of our competitors, and will provide us the opportunity for growth and profitability as the market recovers to normal industry level in the coming years.” Shibata noted that the Lexus luxury brand is a good fit for Sumitomo. “This brand built its reputation over its 50 years of Toyotaassociated experience by showing their commitment to building the finest cars, doing it right from the start and having the finest dealer network in the industry, which is built on their trust, integrity and commitment,” Shibata noted. “This is evident because one of the brand’s strengths is having the most loyal customers in the industry, which is the backbone of its success in the U.S. We, as Sumitomo, share the same basic principles of doing business as we do in fulfilling our obligation to society, and we felt that we would be a good business partner with a brand and company of whom we share the same values.” “Lexus puts its customers first, as it says in their ‘Lexus Covenant,’” continued Shibata. “It says, ‘Lexus will treat each customer as we would a guest in our home,’ which enables us to execute our mission to create value for our customers as well as contribute to the local community.” Part of SCOA’s role in supporting this operation, according to Shibata, is in the areas of finance and treasury, establishing Sumitomo Corporation of America 9

Table of Contents for the Digital Edition of Visions - Fall 2011

Visions - Fall 2011
Acquisition of Standard Steel Increases Rail Supply Strength in North America
Transportation Unit Completes Miami Airport’s Newest APM System
Sumitomo Corporation and Mazda Begin Construction on Mexican Production Facility
Summit Motor Management Acquires New Lexus Dealership
The View From Washington

Visions - Fall 2011