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American Suzuki files for bankruptcy, withdraws from U.S. car market
Japanese automaker Suzuki’s U.S. car division has filed for bankruptcy and is planning to stop selling cars in the country.
The company, which also makes motorcycles and all-terrain vehicles (ATVs), is seeking Chapter 11 bankruptcy protection for its American Suzuki Motor Corporation (ASMC).
“Following a thorough review of its current position and future opportunities in the U.S. automotive market, ASMC will wind down and discontinue new automobile sales in the continental U.S.,” the company said in a statement announcing the decision. “The company has determined the best path to achieve this realignment in an efficient and orderly manner is to restructure its operations under Chapter 11.”
American Suzuki is separate from its parent group, the Suzuki Motor Corporation. The company said it “remains firmly committed to motorcycles/ATV and marine products” and promised to honor warranties for its discontinued cars.
National Automobile Dealers Association (NADA) chairman Bill Underriner cheered the announcement that American Suzuki would honor its existing warranties, but he said the company’s decision to leave the U.S. auto market was a big loss for the industry.
“NADA is saddened to learn that American Suzuki will exit the U.S. car and truck market,” Underriner said. “Of course, all of us are especially concerned about the impact on Suzuki customers and dealers. We are pleased to hear that Suzuki intends to honor all warranties and plans to maintain a parts and service network – but the announcement is, nevertheless, devastating to the more than 200 Suzuki dealers operating in the U.S.”
The NADA said Suzuki has 220 dealerships in the U.S. that employ approximately 11,000 people.
Underriner said the organization “will do everything possible to ensure
that Suzuki dealers and vehicle owners are treated fairly through this
difficult wind-down process.”
-This story was updated with new information at 1:03 p.m.
