Suzuki Motor Corp. will pull out of the U.S. car market after almost three decades, following Saab Automobile and Isuzu Motors Ltd. among automakers making their exits after failing to earn profits in the country.
Suzuki will stop the sale of new automobiles in the U.S., though it will continue offering motorcycles, all-terrain vehicles and boat motors, the Hamamatsu, Japan-based carmaker said in a statement. The company’s U.S. distributor filed for bankruptcy protection in Santa Ana, California as part of the reorganization.
The withdrawal marks the end of a business that began in 1985 and never managed to win over U.S. consumers as Toyota Motor Corp. and Honda Motor Co. did. The move allows Suzuki, which has the smallest U.S. market share among Asian automakers, to focus on defending its lead in India, where the company is facing mounting competition from Hyundai Motor Co.
“Suzuki is no longer among the carmakers like Toyota or Honda to have an advantageous position in the U.S., so why not focus on what it is good at?” said Satoshi Yuzaki, Tokyo-based general manager at Takagi Securities Co. “It makes sense for Suzuki to focus on India and other Asian markets.”
Suzuki’s sales in the U.S. will stop after its current inventory runs out, said Ei Mochizuki, a Tokyo-based spokesman.
American Suzuki Motor, the wholly owned U.S. distribution unit, agreed to begin reorganization proceedings under Chapter 11 of the U.S. Bankruptcy Code, Suzuki said. The unit had $346 million of debt and $233 million in assets as of Sept. 30, according to bankruptcy filings.
Suzuki will retain dealerships to maintain existing vehicles, Hideki Taguchi, a company spokesman in Tokyo, said.
Everything you need to know about purchasing, maintaining and driving your car.
Become a member
Register now to access all features including:
- Save and ask friends to review vehicles
- Exclusive rebates & offers from local dealers
- Premium content, reviews and tools
All for free!
Already a member?
Registration 2 of 2
Welcome to Wheels!
As a final step we've sent a confirmation to your email address as a security measure. Please click the link in the email to complete your registration.
Terms of services
DISCLAIMER OF WARRANTIES AND LIMITATION OF LIABILITY
TO THE FULLEST EXTENT PERMITTED BY LAW, TORONTO STAR IS PROVIDING THE TORONTO STAR WEBSITES ON AN "AS IS" AND â€œAS AVAILABLEâ€ BASIS AND MAKES NO WARRANTIES OR REPRESENTATIONS, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, IN ANY CONNECTION WITH THE TORONTO STAR WEBSITES, THEIR CONTENTS, OR ANY WEB SITE OR CONTENTS WITH WHICH IT IS LINKED. TORONTO STAR DOES NOT WARRANT THAT THE FUNCTION OF THE TORONTO STAR WEBSITES OR THEIR CONTENTS WILL BE UNINTERRUPTED OR ERROR FREE, THAT DEFECTS WILL BE CORRECTED, OR THAT THE TORONTO STAR WEBSITES OR THE SERVERS THAT MAKE IT AVAILABLE ARE FREE OF VIRUSES OR OTHER HARMFUL COMPONENTS.
TO THE FULLEST EXTENT PERMITTED BY LAW, UNDER NO CIRCUMSTANCES, INCLUDING, BUT NOT LIMITED TO, NEGLIGENCE, SHALL TORONTO STAR BE LIABLE FOR ANY LOSS OF USE, LOSS OF DATA, LOSS OF INCOME OR PROFIT, LOSS OF OR DAMAGE TO PROPERTY, OR FOR ANY DAMAGES OF ANY KIND OR CHARACTER (INCLUDING WITHOUT LIMITATION ANY COMPENSATORY, INCIDENTAL, DIRECT, INDIRECT, SPECIAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES), EVEN IF TORONTO STAR HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES OR LOSSES, ARISING OUT OF OR IN CONNECTION WITH THE USE OF THE TORONTO STAR WEBSITES, THEIR CONTENTS, OR ANY WEBSITE OR CONTENTS WITH WHICH IT IS LINKED. IN NO EVENT SHALL TORONTO STARâ€™S TOTAL LIABILITY FOR ALL DAMAGES, LOSSES, AND CAUSES OF ACTION, WHETHER IN CONTRACT, TORT (INCLUDING, BUT NOT LIMITED TO, NEGLIGENCE), OR OTHERWISE, EXCEED THE AMOUNT PAID BY YOU FOR ACCESSING THIS SITE.X