Suzuki Bankrupt, Files for Chapter 11 in America
Despite a positive 5 percent sales increase for the month of October, American Suzuki is preparing to close up shop in North America, announcing it will file for Chapter 11 bankruptcy protection.
Japanese automaker Suzuki, while still prosperous in its home market of Japan, as well as in emerging markets like India, has made the decision to close its US operations, American Suzuki Motor Corp.
“While the decision to discontinue new automobile sales in the U.S. was difficult to make, today’s actions were inevitable under these circumstances,” the company said in a statement, referring to a small product lineup of low volume vehicles, not to mention high costs and government regulations.
Suzuki has said it will continue to honor warranties, as well as supply parts and service cars through its dealer network.
From over 100,000 units sold in 2007, the Japanese automaker has sold just 26,618 units last year.
The company won’t disappear from the US market altogether as it will continue to sell its popular motorcycles, as well as marine products and all-terrain vehicles.
Rumors have pointed to Suzuki’s US-market exit for quite some time, with many in the industry also signaling Mitsubishi as another likely candidate for Chapter 11.
With AutoGuide from its launch, Colum previously acted as Editor-in-Chief of Modified Luxury & Exotics magazine where he became a certifiable car snob driving supercars like the Koenigsegg CCX and racing down the autobahn in anything over 500 hp. He has won numerous automotive journalism awards including the Best Video Journalism Award in 2014 and 2015 from the Automotive Journalists Association of Canada (AJAC). Colum founded Geared Content Studios, VerticalScope's in-house branded content division and works to find ways to integrate brands organically into content.
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They're a very good company but missed the sports car market (2 seater) for some time. There were a few concept cars Suzuki refused to build in that niche..... what a shame! I'm looking at a Suzuki Cappuccino concept that could have swept the market and beat all comers 5 years ahead of the comp !
I, personally, was a Suzuki dealer in IL for about a year when they decided to destroy their existing dealer body, one dealer at a time. Their corporate marketing department had their heads so far up their back-ends it wasn't funny. They had very competent individuals to run their dealerships but the demise of Suzuki in North America all came from the top on down. I wish I could have seen the writing on the wall. I could have saved myself a personal fortune. Live and learn.....again.