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Suzuki reaches agreement with dealerships on bankruptcy transition
Japanese automaker Suzuki’s U.S. car division has reached an agreement with its largest auto dealership on a compensation package for its plan to stop selling cars in the country.
Suzuki, which also makes motorcycles and all-terrain vehicles (ATVs), said last month that it is seeking Chapter 11 bankruptcy protection for its American Suzuki Motor Corp. (ASMC).
The National Automobile Dealers Association (NADA) said at the time that Suzuki has about 220 dealerships in the U.S. that employ approximately 11,000 people.
The automaker said Tuesday that the agreement that has been reached covers 213 of its dealerships, representing almost all of its U.S. sales.
“We greatly value our relationship with our customers, and it is very important to us that they continue to receive the necessary support from ASMC during and after our restructuring,” he continued. “As these agreements demonstrate, we are working within our current U.S. automotive dealer network to help structure a smooth transition from new automobile sales to exclusively parts and service operations. Based on dealer acceptances, we continue to believe our restructuring and realignment will be completed in a timely manner.”
The news of Suzuki’s withdrawal from the U.S. auto market was first announced on Election Day. It followed a contentious presidential campaign that centered in the closing days largely on the financial health of U.S. auto companies.
The company, which is separate from its parent group, the Suzuki Motor Corp., said at the time of the announcement that it “remains firmly committed to motorcycles/ATV and marine products” and promised to honor warranties for its discontinued cars.
-This story has been corrected on Dec. 6, 2012 from an earlier version that incorrectly identified the number of dealerships that were included in the Suzuki agreement.
