American Suzuki Motor Corp. Withdraws From U.S. Market Under Banner of Bankruptcy
It has been a long time coming, but it is finally official: Suzuki will be withdrawing from the U.S. automotive market. The move has been executed under Chapter 11 bankruptcy protection, which will help the car company perform an organized escape from America. Suzuki will no longer be selling cars south of the border, choosing instead to focus on its all-terrain vehicle and motorcycle sales.
Suzuki was essentially already on the way out, if one were to examine its behavior in the American market over the course of the past ten years. Its dealership network had shrunk to the point where obtaining service for Suzuki vehicles was difficult at best, and advertising budgets were almost non-existent - a reality that rankled the owners of Suzuki stores who complained of an almost complete lack of support from the parent corporation. Although the Suzuki lineup featured a few competitive models like the recent Suzuki Kizashi, these vehicles were largely unknown to the car-buying public.
American Suzuki Motor Corp. will convert a percentage of existing dealerships into service centers that will be able to handle warranty claims and deal with other customer issues, although the closing of a large number of these facilities will make it even harder for existing customers to obtain support for their vehicles. There has been as yet no word on whether Suzuki's Canadian operations will be affected, given the lack of common ownership and a historic disconnect between American and Canadian Suzuki offerings. The automaker will continue to sell new cars and trucks in Europe and Asia.
UPDATE: Suzuki Canada has confirmed that it will continue to sell cars unaffected by the American distributor's bankruptcy.
