American Suzuki Files for Bankruptcy Protection, Will Stop Selling Cars in the U.S.
By Elaine Silver for The Auto Channel
San Francisco, CA--November 6, 2012: American Suzuki is closing up shop in the United States. So says the documents filed in Washington, DC at the U.S. Bankruptcy Court. The court papers say that Suzuki's liabilities extend from $100 million to almost $500 million. And, there are up to 5,000 businesses awaiting payments from the company. This concludes the brand's decline since General Motors announced it was selling the remainder of its stake in Suzuki in 2008.
Some dealerships will be closed, the company says, and others will be converted into repair shops. After the shakeout, American Suzuki will be concentrating on its non-car businesses: motorcycles, ATVs and marine engines.
When it emerges from bankruptcy, the company will keep the American Suzuki Motor name.
Suzuki's U.S. sales have been slow. While other car manufacturers' sales have been going gangbusters, Suzuki reported that it sold just over 2,000 cars in October, which was up just 5% from the same month last year. Suzuki's Grand Vitara sport utility vehicle was the star with a 64% jump in sales last month, although the exact number of cars has not been released.