American Suzuki to pull out of U.S. auto market, file Chapter 11 bankruptcy

[ausrutherford]

Ryan Beene
November 5, 2012
Automotive News

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.

[nruggiero]

It's about time.

Mitsubishi will be the one next in line.

[Andrew L]

So long! Nice knowing you!

[ZanatWork]

I never really got how they hung on this long. In their early days, silly stuff like the Samurai made sense as far as people looking for cute, quirky vehicles...but they haven't had anything in the car market that stood out in...maybe a decade or more.

I wonder what the dealership by my last apartment is gonna do now. They had FIAT as a second brand, wonder if that'll move 'em up to first....

[MaxLegroom]

The major stupidity on their part was in not continuing to sell the Swift. The current generation had definite hot hatch credentials, and would have made an interesting alternative to a Mini Cooper.

[GRIMEYtheFATMAN]

I wonder if this means they'll pull out of Puerto Rico as well or not, since it's apparently a different market, and I saw more Suzukis than Hondas down there(both cars and bikes)...?