The American distributor of Suzuki automobiles /Suzuki cars filed for Chapter 11 Bankruptcy today ending the sales and distribution of Suzuki vehicles in the United States.
According to the Press Release, Suzuki will continue to sell motorcycles, ATVs and the marine products in the United States.
“American Suzuki Motor Corporation (“ASMC” or “the Company”), the sole distributor in the continental United States of Suzuki Motor Corporation (“SMC”) automobiles, motorcycles, all-terrain vehicles and marine outboard engines, today announced that it plans to realign its business to focus on the long-term growth of its Motorcycles/ATV and Marine divisions. ” today’s press release states. “ASMC remains firmly committed to Motorcycles/ATV and Marine products, and these divisions are competitively positioned in their respective markets, allowing for long-term growth as economic conditions improve. The realignment is intended to better position ASMC for long-term success and is a return to the Company’s roots in the U.S. market, which began with motorcycles and has grown to include ATV and marine products.”
Suzuki states that it will honor the warranties of current Suzuki cars, trucks and sport utility vehicles.
Why did the company file for chapter 11 bankruptcy protection?
According to the American Suzuki Motor Corporation, “low sales volumes, a limited number of models in its line-up, unfavorable foreign exchange rates, the high costs associated with growing and maintaining an automotive distribution system in the continental U.S. and the disproportionally high and increasing costs associated with stringent state and federal regulatory requirements unique to the U.S. market.” is the reason.
Suzuki will continue to sell cars in other part of the world like India where it makes a profit.
In the U.S. Suzuki struggled to sell new vehicles with a limited product range and limited dealer network.
We recently took the Suzuki Grand Vitara off-road and came away impressed at how well it does when the road gets rough and muddy.
Check out this video below.
Suzuki Cars will be missed in the United States.
The Fast Lane Car’s very own Nathan owned two Suzuki cars and he was about to snag a used SX4 for a friend.
