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Tag: bankruptcy

Suzuki Declares Bankruptcy, Abandons US Market

A small, but familiar name will be leaving the American auto industry as American Suzuki Motor Corporation citing unprofitability in the competitive market and filed Chapter 11 bankruptcy.

 

Operations in Canada and Mexico will be unaffected.

 

“We hate to see any automobile business go under,” said Tony Carter of Northwest Honda dealership in Bellingham. “We’ve all seen some hard times and we believe competition in the market leads to better options for the consumer. While it’s unfortunate for Suzuki fans, we want everyone to know that Honda dealerships can service any Japanese car and they can come to us if they need it.”

 

According to this article, “Chapter 11 bankruptcy filing was done to allow a smooth transition for setting up service networks for existing Suzuki vehicles. Suzuki is assuring owners of their products that warranties will remained honored. However, the ability to find parts for Suzuki vehicles could be difficult heading into the future. Another long-term effect likely to plague Suzuki automobiles in the United States will be resale value.”

 

American Suzuki has been selling vehicles in the US for 27 years, but has accrued $346 million in debt. In addition to the tough market, Suzuki also cited the high Japanese Yen as a reason for discontinuing automobile sales in the US. “The company was also concerned about the rigors for complying to safety and fuel regulations in the United States as reasons that make developing future products.”

 

Suzuki vehicles can be taken to Northwest Honda, Apple Valley Honda and Sims Honda dealerships for service and repair.

 

See entire article here.

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