We knew that Suzuki’s automotive division was having problems in the United States, but we never imagined that the Japanese carmaker would go as far as to file for Chapter 11 bankruptcy protection and completely exit the automobile market in the country (this decision does not affect its global automotive operations).
American Suzuki Motor Corporation (ASMC), which is the exclusive distributor in the continental United States of Suzuki Motor Corporation automobiles, motorcycles, all-terrain vehicles and marine outboard engines, made the announcement on Monday night, citing several reasons:
“These challenges include 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,” Suzuki said in a statement.
Suzuki sold 21,188 cars and trucks from January through October this year, a 5 percent decrease over the same period in 2011, despite the fact that the U.S. market as a whole, grew by around 14 percent.
“While the decision to discontinue new automobile sales in the U.S. was difficult to make, today’s actions were inevitable under these circumstances,” Suzuki said in a statement.
Whereas the company’s automotive operations in the U.S. will be shut down, Suzuki said it “remains firmly committed to Motorcycles/ATV and Marine products” in the States.
As for current Suzuki vehicle owners, the Japanese manufacturer said, “consumers will be protected and all warranties will continue to be fully honored”.
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