American Suzuki files for bankruptcy protection

[csv8]

American Suzuki files for bankruptcy protection
Associated PressAssociated Press – Tue, Nov 6, 2012 7:13 AM EST



BREA, Calif. (AP) — American Suzuki Motor Corp. on Monday filed for Chapter 11 bankruptcy protection and said it will cease selling automobiles in the U.S. as part of a plan to restructure its business.

The company, based in Brea, Calif., is the sole distributor of Suzuki Motor Co. vehicles in the continental U.S.

In documents filed with the U.S. Bankruptcy Court in the Central District of California, the company estimated that its debts and liabilities range from at least $100 million to as much as $500 million.

It also said it has between 1,000 and 5,000 creditors.

American Suzuki Motor said it has enough cash to operate during the restructuring and intends to honor all car warranties and buyback agreements. It will work with its car dealerships to help them transition into parts-and-service operations. In some cases, the dealerships will be shuttered, it said.

Once it exits bankruptcy protection, American Suzuki Motor said it will focus on selling Suzuki motorcycles, all-terrain vehicles and marine outboard engines.

It said that it is exiting the car business because of slow sales, unfavorable foreign exchange rates and high costs due to U.S. regulatory requirements.

It sold 2,023 vehicles in October, which was up 5 percent from the same month last year. Its Grand Vitara sport utility vehicle posted a 64 percent jump in sales last month, although American Suzuki did not say how many of them were sold. In May, the last month it provided a breakdown of its sales, it moved 474 Grand Vitaras, while its biggest seller was its SX4 small crossover, of which 1,101 were sold.

The bankruptcy and reorganization are unrelated to its parent Japan-based Suzuki Motor Corp., which intends to buy the American subsidiary's remaining businesses and automotive service operation.

The reorganized company will retain the American Suzuki Motor name, the company said.
http://au.search.yahoo.com/search?fr...+in+bankruptcy

http://www.theautochannel.com/news/2...agreement.html

[mik]

I`ve been thinking for a while now there are just too many car makers and cars on the planet and not enough people with cash to buy them, i`d bet a dollar give it 20 years there will be quite a few less car makers.

[MethodX]

The Kizashi was supposed to be their great hope and enable them to take on Toyota.
Has the Kizashi been selling, its a nice looking car.

[Jim Goose]

Since the average American prefers a 10.9liter V8 mini truck which guzzles petrol quicker then they can buy it.... it not surprising that a "small" car seller is going bust.

[csv8]

If the Kizashi had the original V6 ,as planned instead of the 4, it might be a different story, now...it got the 4 because of the GFC...

[nstg8a]

I love the kizashi, agreed if it had the V6 it would be doing better. I'd probably have one already.

[Luke Plaizier]

Originally Posted by MethodX

The Kizashi was supposed to be their great hope and enable them to take on Toyota.
Has the Kizashi been selling, its a nice looking car.

The Kiss what?


Lukeyson

[csv8]

From Wikipedia...Kizashi is a Japanese word which means "something great is coming", "omen", "sign", or "warning", so it is possible Suzuki means to suggest to other automobile manufacturers that its Kizashi is an example of Suzuki's future products. The Kizashi aspires to be Suzuki's flagship sedan and currently exceeds Japanese government regulations concerning exterior dimensions and engine displacement for cars classified as "compact".

[geehaa]

Originally Posted by Jim Goose

Since the average American prefers a 10.9liter V8 mini truck which guzzles petrol quicker then they can buy it.... it not surprising that a "small" car seller is going bust.

September monthly sales and change vs. 2011 and their year-to-date sales and change:

Ford F-series, 55,077/1.2%, 463,733/11.4%
Chevy Silverado, 35,435/-16.6%, 298,200/0.6%
Toyota Camry, 34,252/37.8%, 314,788/37.1%
Honda Accord, 29,182/56.6%, 247,847/36.9%
Ram Trucks, 25,973/5.9%, 213,593/20%
Chevrolet Cruze, 25,787/1.2%, 180,600/-3.7%
Nissan Altima, 24,448/0.4%, 234,040/16.7%
Ford Escape, 23,148/14.5%, 200,075/6.5%
Toyota Corolla/Matrix, 23,026/42.6%, 222,703/19.2%
Honda CR-V, 22,268/13.6%, 213,381/32.5%

3 of the top 10 might qualify

[OzJavelin]

Originally Posted by geehaa

September monthly sales and change vs. 2011 and their year-to-date sales and change:

Ford F-series, 55,077/1.2%, 463,733/11.4%
Chevy Silverado, 35,435/-16.6%, 298,200/0.6%
Toyota Camry, 34,252/37.8%, 314,788/37.1%
Honda Accord, 29,182/56.6%, 247,847/36.9%
Ram Trucks, 25,973/5.9%, 213,593/20%
Chevrolet Cruze, 25,787/1.2%, 180,600/-3.7%
Nissan Altima, 24,448/0.4%, 234,040/16.7%
Ford Escape, 23,148/14.5%, 200,075/6.5%
Toyota Corolla/Matrix, 23,026/42.6%, 222,703/19.2%
Honda CR-V, 22,268/13.6%, 213,381/32.5%

3 of the top 10 might qualify

Yep .. All of the Americans I've met here in Australia (especially in my previous life working for IBM) owned nothing bigger nor more exciting than a Camry ..