Suzuki to stop selling cars in the US after three decades, according to The Wall Street Journal. The company stated it is currently having a difficult time turning a profit.
Instead of selling compact cars to Americans, Suzuki Motor Corp. will focus its strengths on motorcycles, all-terrain vehicles, and marine equipment. The company explained that it will continue to focus on small cars in countries such as India.
The Chicago Tribune reports that American Suzuki Motor Corp. filed for Chapter 11 bankruptcy protection on Monday. As a result, the company will stop selling new cars in the United States.
By filing for bankruptcy, Suzuki will be able to walk away from the responsibilities and obligations it has to the 200 or so dealers sprinkled across the country. General Motors and Chrysler did the same thing when the companies filed for bankruptcy in 2009. Suzuki reportedly has an outstanding debt of $346 million, $173 million is owed to group companies.
Suzuki’s automotive offerings never really caught on with American car buyers. As a result, the company didn’t bother to invest in new designs. The lack of available products combined with a weak yen ultimately forced the manufacturer to abandoned compact cars sales in the US.
Despite filing for Chapter 11 bankruptcy, Suzuki will continue to honor warranties. At present, the company sold around 21,000 cars this year, which makes it the worst-selling mainstream brand currently available to prospective buyers.
Suzuki first entered the American car market way back in 1985. While the cars sold reasonably well over the years, the company peaked with over 102,000 cars sold in 2007. Although executives toyed with the idea of introducing bigger cars into market, these plans never came to fruition. General Motors’ financial struggles forced Suzuki to end its partnership with the company in 2009.
Are you surprised that Suzuki will stop selling cars in the US?