November 5, 2012
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.