Suzuki Pulling Out of the US, Files for Chapter 11 Bankruptcy

[Kal-El]

The writing's been on the wall for years. Finally coming to past.




http://www.autonews.com/apps/pbcs.dl...ile-chapter-11

LOS ANGELES -– American Suzuki Motor Corp., beset by low sales, cutthroat competition and unfavorable foreign exchange rates, said it will pull out of the U.S. auto market and file for Chapter 11 bankruptcy protection.

The company, in a statement today, said it will continue its motorcycle and marine engine business units and will continue to honor customer warranties. American Suzuki's bankruptcy filing is expected to be available later tonight in California. Japanese parent company, Suzuki Motor Corp., is not filing for bankruptcy, the company said.

American Suzuki cited its poor U.S. auto sales, high costs, regulatory requirements and unfavorable foreign exchange rates as factors that contributed to the decision to wind-down its automotive business.

"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 the statement.

Suzuki has about 246 U.S. dealers.

The company "intends to work within its current U.S. automotive dealer network to help structure a smooth transition from new automobile sales to exclusively parts and service operations, or, in some instances, an orderly wind-down of dealership operations," the statement said.

Suzuki's U.S. sales through October totaled 21,188 vehicles, down 5 percent for the same period last year. The entire U.S. market has risen 14 percent through October.

[DanMC]

A sad day !, i thought Kizashy (or whatever it's called) was a great value with it's all wheel drive option.But then i kinda new that they are not a strong company...I'm surprized that VW didn't just buy them out.I think VW already owns something like 13% of the Suzuki Corp., not just Suzuki US.This is a sign that times are bad and it can easily happen to any company .
Dan

[SailDesign]

I think it was a question of not having enough at the start. If they had more dealers, it woulod ahve been simpler. They ahve great products in all categories, but only the bikes and small stuff was really "available" everywhere.

[Thirty-Nine]

I traded my SX4 in seven months ago for our Subaru Forester because I was afraid of this happening. We loved our SX4, but I didn't want to get stuck with a vehicle that'd be difficult to find parts or warranty work for in, say, five years.

I still have my '95 Sidekick, and I have no plans to get rid of that since parts are plentiful and there were thousands and thousands of Trackers/Sidekicks made from '89-'98.

Regardless, Suzuki makes some good products, but their management here in the States has been piss poor for years.

[nookandcrannycar]

Originally Posted by Thirty-Nine

I traded my SX4 in seven months ago for our Subaru Forester because I was afraid of this happening. We loved our SX4, but I didn't want to get stuck with a vehicle that'd be difficult to find parts or warranty work for in, say, five years.

I still have my '95 Sidekick, and I have no plans to get rid of that since parts are plentiful and there were thousands and thousands of Trackers/Sidekicks made from '89-'98.

Regardless, Suzuki makes some good products, but their management here in the States has been piss poor for years.

Good choice with the Subaru. In 2009 My uncle's oldest granddaughter had the drivetrain fail on her Mazda Tribute (after many other issues). She sold it to a junkyard and bought a brand new Subaru Impreza 2.5i Hatchback. She loves that car so much you'd have to 'pry it out of her cold dead hands' (so to speak) to get it away from her.

When my Acura was starting to die in 2001, I was looking at the Echo and the Suzuki Swift. I liked all the mechanicals re the Echo (of course , so Yaris-like) and the interior.....I just hated the exterior styling and the fact that no hatch was available in the U.S. . I ended up getting the Suzuki. It was a really good car...and by the time it gave out the Gen 2 Yaris had been 'born', so I no longer had any styling nor 'no hatch' concerns.

If I decide to add an AWD vehicle, my first choice would be to do what Idahotom did and find a proper old RAV4. If I couldn't find such a 'find' (quite likely), my second choice = your line of thinking (previously an SX4, but now a Subaru), except I'd go for the Impreza 2.0i Sedan with the 5sp manual w/OD rather than the Forester.

[tk1971]

The Kizashi is a good looking vehicle. When my brother was downsized out of his job at Mitsubishi USA a few years ago, there was talk that they would pull out of the US market too. That's just the way it is...

[Deathegg]

And next will be Mitsubishi.

[DanMC]

And then Mazda (no longer under Ford)....Nissan is already under Renault ...

[Thirty-Nine]

Originally Posted by DanMC

And then Mazda (no longer under Ford)....Nissan is already under Renault ...

Mazda will be fine. They're building a plant in Mexico as we speak.

Plus, they're building a new subcompact to be sold as a Toyota.

http://www.subcompactculture.com/201...as-toyota.html

[Kal-El]

Originally Posted by DanMC

And then Mazda (no longer under Ford)....Nissan is already under Renault ...

Mazda is doing just fine. Not going anywhere unless they take a dramatic downturn in the future.

As for Nissan, it's more like the other way around but is ultimately a two-way alliance. Renault owns about 43% of Nissan and Nissan owns part of Renault.

Nissan is the 6th largest automaker in the world.

[junorico24]

Sad.

[Thirty-Nine]

It's funny, because before we bought the SX4 we were looking at getting a used older RAV4 instead to save some money. I've always liked them, and still would like to have one. Two door, AWD, lowered, 4AGE. :D

[nookandcrannycar]

Originally Posted by Thirty-Nine

It's funny, because before we bought the SX4 we were looking at getting a used older RAV4 instead to save some money. I've always liked them, and still would like to have one. Two door, AWD, lowered, 4AGE. :D

I like the two door as well, but the 4 door (especially in White like Idahotom has) is, in my mind, the Holy Grail of that vintage. It would be nice if I could find one that a little old lady only drove to church on Sundays . Fat Chance. But I can dream!