Citing poor sales, vast competition and bad exchange rates, the California-based American Suzuki Motor Corp. will end its U.S. auto business and file for Chapter 11 bankruptcy protection.
While continuing its motorcycle and marine engine business units, Suzuki, which began its U.S.-based business in 1985, will making models such the Samurai, Sidekick SX-4, XL-7, Vitara, Grand Vitara and its most expensive model, the Kizashi.
Suzuki Japanese parent company, Suzuki Motor Corp., is not filing for bankruptcy, the company said, while adding the American company, which has about 245 U.S. dealers, will honor customer warranties;
“While the decision to discontinue new automobile sales in the U.S. was difficult to make, today’s actions were inevitable under these circumstances,” the company said in the statement.
Suzuki’s U.S. sales through October totaled 21,188 vehicles, down 5 percent for the same period last year. The entire U.S. market has risen 14 percent through October.