Bankruptcy for U.S. Suzuki Unit

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Bankruptcy for U.S. Suzuki Unit

The American Suzuki Motor Corporation filed for Chapter 11 bankruptcy protection on Monday evening and said it would cease selling automobiles in the United States as part of a plan to reorganize its business.

The company, based in Brea, Calif., is the sole distributor of Suzuki vehicles in the continental United States.

American Suzuki said it would focus on selling Suzuki motorcycles, all-terrain vehicles and marine outboard engines.

It said it was exiting the car business in the United States because of slow sales, unfavorable foreign exchange rates and the high costs of complying with state and federal regulatory requirements. American Suzuki sold just 2,023 cars in the United States last month.

The bankruptcy does not involve the company's parent, Suzuki Motor of Japan.

In documents filed with the Federal Bankruptcy Court for the Central District of California in Santa Ana, the company estimated that its debts and liabilities ranged from at least $100 million to $500 million. It also said it had 1,000 to 5,000 creditors.

American Suzuki said it had enough cash to operate during the reorganization and intended to honor all car warranties and buyback agreements. It will work with its car dealerships to help them make the transition to parts-and-service operations. In some cases, the dealerships will be closed, it said.

The reorganized company will retain the American Suzuki Motor name, the company said.

 

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No body likes Suzuki except third world countries