Founded by Michio Suzuki in 1909, Suzuki is a line of automobiles that has always been known for value and affordability. By the 1950's Suzuki was expanding to make more than just loom machines and was now making both automobiles and motorcycles. In the 1980's, Suzuki began partnering with automaker GM motors, re-badging Suzuki products and selling them as GM vehicles in America. But today, as a sad reality, Suzuki auto sales are soon to come to a cease in the United States.
On Monday, November 5, 2012, the American Suzuki Motor Corporation filed for chapter 11 bankruptcy protection. As a part of the business' restructuring plan, it has announced that it will no longer be selling automobiles in the United States. This company, with its headquarters in Brea, California, is the primary and sole distributor of Suzuki vehicles within the U.S.
Located within the Central District of California, the U.S. Bankruptcy Court has files documenting that the Suzuki Corporation has liabilities and debts ranging from an estimated one-hundred million dollars to over five-hundred million dollars. It has also been quoted that the company has between 1000 to 5000 creditors to which it owes.
According to the owners of the American Suzuki Motor Corporation, there is still enough money to allow them to operate during the restructuring process and they still intend to honor all buy back agreements and warranties in relation to their customers. The company also intends to work with vehicle dealerships to transition into parts-and-service operations.
Once the bankruptcy protection process is over, the owners of American Suzuki Motors intend to place their focus on selling Suzuki all-terrain vehicles, marine outboard engines, and motorcycles. So if they intend to keep selling products, why are they terminating vehicle sales? Rumor has it that Suzuki is ending all auto sales because of unfavorable foreign exchange rates combined with slow sales and increased costs caused by U.S. regulatory requirements.
As for Suzuki sales, over 2, 023 vehicles were sold in October of 2012 - a number that is 5% higher than that of which it was in October of 2011. And while the Suzuki company did not specify exactly how many were sold, they did state that their Grand Vitara Sport Utility vehicle jumped over 64% in sales last month. In May of 2012, Suzuki had sold over 474 Grand Vitaras and over 1 101 SX4 Crossovers.
According to Suzuki, the reorganization and bankruptcy of the company are in no way related to the Japan based Suzuki Motor Corporation. In fact, the Japan company has intentions of purchasing any remaining businesses and service operations from the American branch. Once the company has been reogranized it will retain the same American Suzuki name.
Read the Original Article at: http://www.stltoday.com/business/national-and-international/suzuki-to-end-auto-sales-in-u-s/article_36f92bac-6af9-54e1-acbd-dc837639d348.html
No comments:
Post a Comment