Suzuki Pulls Out of the US, files for Chapter 11 bankruptcy
11-05-12, 05:09 PM
#1
Instructor
Thread Starter
Suzuki Pulls Out of the US, files for Chapter 11 bankruptcy
Sad to see, but inevitable.
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.
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.
http://www.autonews.com/apps/pbcs.dl...ile-chapter-11
11-05-12, 06:30 PM
#2
Lexus Fanatic
Well, Mike, there it is.........the answer to one of our last discussion-topics 
(which automaker after Isuzu would be next to pack up and leave the American market), although, to an extent, it overlooks the total demise of Mercury, Pontiac, Hummer, Saturn, and Saab. They, of course, were totally axed, not just pulling out of one country, though Saab may or may not still be saved.
I agree it's sad. The Kizashi, for one, was a very nice product, and the SX-4 was the most inexpensive way in the American market (even more-so than the Subaru Impreza) to get an AWD vehicle for winter. Like the Impreza, the SX-4 was well built and reliable, and, unlike the Impreza, it had a 3-position switch for FWD/AWD/AWD-Lock.
But I don't agree that it was inevitable. The reason Suzuki didn't sell many vehicles here is mainly because so many of their dealerships closed up. I once had four or five of them within a reasonable driving distance of my house......now there is barely one, and that one is right at a subway-station where people don't need cars as much. You can't sell vehicles without retail outlets unless you allow buyers to order them and pick them up at the factory, and Suzuki (to my knowledge) did not have any U.S. assembly-plants.
(which automaker after Isuzu would be next to pack up and leave the American market), although, to an extent, it overlooks the total demise of Mercury, Pontiac, Hummer, Saturn, and Saab. They, of course, were totally axed, not just pulling out of one country, though Saab may or may not still be saved.
Originally Posted by venom21
Sad to see, but inevitable.
But I don't agree that it was inevitable. The reason Suzuki didn't sell many vehicles here is mainly because so many of their dealerships closed up. I once had four or five of them within a reasonable driving distance of my house......now there is barely one, and that one is right at a subway-station where people don't need cars as much. You can't sell vehicles without retail outlets unless you allow buyers to order them and pick them up at the factory, and Suzuki (to my knowledge) did not have any U.S. assembly-plants.
Last edited by mmarshall; 11-05-12 at 06:35 PM.
11-06-12, 12:42 AM
#3
Lexus Champion
IMHO, they should've launched the Swift in America
Anyways, this news is sad considering that they have a good vehicle lineup (amidst a relatively-deficient dealer network). The Kizashi, SX4 and Grand Vitara are relatively good vehicles. They may not be the best BUT THEY ARE far far away from being the worst.
With that said, I do hope Suzuki comes back over there in Stateside sometime in the near future.
Anyways, this news is sad considering that they have a good vehicle lineup (amidst a relatively-deficient dealer network). The Kizashi, SX4 and Grand Vitara are relatively good vehicles. They may not be the best BUT THEY ARE far far away from being the worst.
With that said, I do hope Suzuki comes back over there in Stateside sometime in the near future.
11-06-12, 05:50 AM
#4
Lexus Champion
But I don't agree that it was inevitable. The reason Suzuki didn't sell many vehicles here is mainly because so many of their dealerships closed up. I once had four or five of them within a reasonable driving distance of my house......now there is barely one, and that one is right at a subway-station where people don't need cars as much. You can't sell vehicles without retail outlets unless you allow buyers to order them and pick them up at the factory, and Suzuki (to my knowledge) did not have any U.S. assembly-plants.
Remember that good salespeople can sell anything but if nobody wants to buy, they will not and cannot continue to sell that product. Don't blame the salespeople (dealerships), blame the product.
11-06-12, 05:57 AM
#5
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To me, one of the biggest reason why they failed is their lack of new products or even refreshes. The SX-4 was the same for as long as it was introduced, same with the kizashi, the grand vitara and so on. They have some amazing products in europe or Japan, but they never came here. Like the Swift that was stated above.
11-06-12, 08:32 AM
#6
Lexus Fanatic
Actually, they did sell the Swift here in America for a number of years. The problem was that they also built a version of it (in Suzuki plants) that was somewhat rebadged as the Chevy/Geo Metro.
And there, we get back to what I said above about dealerships. One could shop for and buy a Metro virtually anywhere...at any Chevy store. Suzuki dealerships, being much fewer and farther apart, simply did not offer the same sales-availability for the Swift, so the obvious happened. That, combined with the fact that the Metro had convertible and XFI ultra-high-mileage versions that the Swift lacked in America, meant that the Metro had a huge sales advantage.
And there, we get back to what I said above about dealerships. One could shop for and buy a Metro virtually anywhere...at any Chevy store. Suzuki dealerships, being much fewer and farther apart, simply did not offer the same sales-availability for the Swift, so the obvious happened. That, combined with the fact that the Metro had convertible and XFI ultra-high-mileage versions that the Swift lacked in America, meant that the Metro had a huge sales advantage.
03-27-13, 10:50 AM
#7
Suzuki ending auto sales in Canada, too
Suzuki ending auto sales in Canada, too
Suzuki of Japan has reportedly made the decision that almost everyone assumed it would make when it announced it was leaving the US market: when the 2014 model year concludes, it will no longer sell cars in Canada. With six employees overseeing its auto business in Canada and a dealer network that has shrunk to 55 outlets in the country, we can't say we're shocked.
At the time of the US announcement, however, the senior VP of sales and marketing in the automotive division of Suzuki Canada said it would be able to survive on its own because, among other reasons, Canadians prefer smaller, more fuel-efficient cars that fit the company's offerings. Five months later, after some time to think about a 30-percent drop in sales to open up 2013 instead of the 1.4-percent increase in sales that Suzuki Canada posted last year, things have evidently changed.
http://www.autoblog.com/2013/03/27/s...in-canada-too/
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03-27-13, 11:26 AM
#10
Lexus Fanatic
Well, they still have their American-market motorcycles to fall back on, though, of course, that also gets intense competition from Yamaha, Honda, and Kawasaki. I wouldn't really list Harley as a competitor, because, in general, Harley markets to a somewhat different crowd than the Japanese bikes.
03-27-13, 11:34 AM
#11
Lexus Fanatic
Cant say Im really surprised. I have been a car nut for about 30 years and couldnt tell you a single Suzuki model other than the old *** Suzuki Samurai . LOL
R.I.P Suzuki
R.I.P Suzuki
03-27-13, 11:45 AM
#12
Lexus Fanatic
Several of their designs (Reno, Verona, Forenza) were not true Suzukis, either, but rebadged Korean Daewoos. And later Vitaras, unlike the earlier ones, were shared with a GM small-SUV platform.
03-27-13, 12:28 PM
#14
Lexus Test Driver
It looks like the "GM Partnership" curse. The only manufacturer that has been able to come unscathed from it is Toyota. All others are either pulling out of the US market or in the case of Subaru, rescued by Toyota.
I also looks like Suzuki Canada underestimated the negative impact of the US pull out on Canadian sales. My neighbour went an traded his Suzuki Vitara for a Subaru, the day after the US announcement. He said, he wanted to maximize whatever market value he had left rather than waiting until it was worth nothing.
PS: I drive by their Canadian HQ building on a regular basis, it always seems that there is no one there.
I also looks like Suzuki Canada underestimated the negative impact of the US pull out on Canadian sales. My neighbour went an traded his Suzuki Vitara for a Subaru, the day after the US announcement. He said, he wanted to maximize whatever market value he had left rather than waiting until it was worth nothing.
PS: I drive by their Canadian HQ building on a regular basis, it always seems that there is no one there.
Last edited by My0gr81; 03-27-13 at 12:32 PM.
03-27-13, 10:01 PM
#15
Well, they still have their American-market motorcycles to fall back on, though, of course, that also gets intense competition from Yamaha, Honda, and Kawasaki. I wouldn't really list Harley as a competitor, because, in general, Harley markets to a somewhat different crowd than the Japanese bikes.