American Suzuki Motors files for bankruptcy

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RocZX

RocZX

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As much as we knew it was a possibility, we have to say that Suzuki's announcement this afternoon that it is filing chapter 11 bankruptcy proceedings caught us a bit off guard. American Suzuki Motor Corporation –the sole distributor of Suzuki automobiles in the United States –will realign its business to focus on motorcycles, ATVs and the marine market.

Suzuki cites "low sales volumes, a limited number of models in its lineup, unfavorable foreign exchange rates, the high costs associated with growing and maintaining an automotive distribution system in the continental US and the disproportionally high and increasing costs associated with stringent state and federal regulatory requirements unique to the US market."

Motorcycles, ATVs and watercraft will not be affected. Current owners of Suzuki cars, trucks and sport utility vehicles will have their warranties honored, and parts will reportedly be made available. Suzuki will continue to sell automobiles in other countries, naturally, including its home market of Japan.
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Don't forget that guy who bought an Equator; he'll be pretty shaken up too.




It's only a matter of time before they file for bankruptcy. Besides the Kizashi, there hasn't been a Suzuki worth buying over its competitors since...ever. I wouldn't be surprised if Mitsubishi comes down in the near future.
 
That's a shame. I liked the Kizashi, and just today was thinking what a bargain it is. However, the only model offered with a manual transmission is the base model, which comes with no option packages and can only be had in white with a beige interior. Seems like they ignored the enthusiasts who they wanted to sell the car to. And now here we are. Oh well, let's face it, Suzuki has never sold a lot of cars in America, so it really doesn't surprise me that they're stopping sales.
 
Toronado
The three SX4 and seven Grand Vitara owners will be devastated.



That one guy who once rented a Kizashi will be mildly upset.
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Hahahaha :lol:

On a more serious note, it was a question of time before they were going down.Poor sales, because of an ordinary line up.
Next up : Mitsubishi. I'm betting 20 bucks.:sly:
 
I lol'd...


JK, its unfortunate this had to happen :/
 
My dad rented a Kizashi on business once, and he liked it. This news is gonna ruin his weekend.
 
Toronado
The three SX4 and seven Grand Vitara owners will be devastated.

That one guy who once rented a Kizashi will be mildly upset.
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:lol:

Certainly not unexpected, but kind of a pity at the same time. I've not driven it myself, but from what I've heard the Kizashi is actually quite good fun.

Suzuki should have tried selling the Swift Sport over there. Another I've not driven, but given that virtually every UK magazine ranks it as highly as the Renaultsport Twingo in terms of small hot hatches (i.e. above the MINI Cooper, above the Fiat 500 Abarth, about a million miles above anything with the Fiesta badge on the back) it may have been tempting for some.

Part of me expects Suzuki UK to go the same way at some point. I think I've seen 1 Kizashi on the road in all the time it's been out, and Vitaras aren't nearly as commonplace as they once were - that market has really taken off and Suzuki has lagged behind. Swifts are fairly common but they still have a small market share, and the Jimny is getting old now.

It took unfavourable exchange rates and low sales to kill off Daihatsu in the UK... and at the moment we still have unfavourable exchange rates, and Suzuki's sales are low...
 
The Kizashi is a fine little car, but that's where the problem starts.

Even the bantams have gone up in size recently... the Sonata, the Mazda6, etcetera... and there's just no reason in hell to buy a Kizashi over any of them.

The Kizashi drives nicely, mind you, but I can't for the life of me name one good reason to buy one over a Mazda6, which is just as light, bigger, and drives better, or even a Hyundai Sonata or a Kia Optima.

The Swift is pretty nice. If Ford-Mazda didn't have to create some sort of market distance between the Mazda2 and the Fiesta, they would have probably built something that drives like the Swift. Yes, yon Americans are missing out an a great little car.
 
niky
...and there's just no reason in hell to buy a Kizashi over any of them.
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And to add another reason to not buy it, the price is similar to those of Sonata, Mazda 6 and even the Honda Accord! There are barely any Kizashis on the road in Malaysia and it really is sad. If they can sell it for a lower price, around MYR100k I think it will be a huge seller over the hot-selling Kia Forte etc...

It is a nice car, undoubtedly but really sad that it has gone that way.
 
Nicktune
What people don't know is that Mitsubishi motors is part of a GIANT conglomerate.They are everywhere.
It's probably the last thing that is going to bankrupt.
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Suzuki is huge too but what matters are sales on a specific part of the world, just like american cars not selling well if not at all in some countries.

Only certain thing is hyundai is going to conquer the world.
 
There is no reason for any company, no matter how big it may be at home, to continue developing cars for a market in which it loses money.
 
Somehow, I don't see AWD as being a problem for the competition. People who want AWD will often want the ground clearance to go with it. And if they don't, they want a Subaru. :D
 
Nicktune
What people don't know is that Mitsubishi motors is part of a GIANT conglomerate.They are everywhere.
It's probably the last thing that is going to bankrupt.
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Oh I know that, I'm just predicting that American Mitsubishi will be the next to fall. Mediocre cars, well-known (relatively) nameplates being discontinued rather than revamped, more mediocre cars, rebadging, and primitive electric cars is certainly one way to go out with a rather long, quiet bang.
 
I love Suzuki, but American Suzuki deserves to die. They were successful micro car maker in Japan. They made a splash in the U.S. market with mini SUV, Samurai/Jimny and little hyper mpg car Swift/Cultus.

I have no idea exactly how much of it was GM, and how much was Suzuki, but they got away from all that made Suzuki successful. Towards the end, they were selling(OK, attempting to sell) bad rebadge jobs, and cars they sucked at marketing.

I actually do feel bad about the state of Mitsubishi. They had the recall scandal back few years in Japan, but I think Mitsubishi did what it could with the very limited resources they had. If they go, I will miss the Lancers, Galants, Montero/Pajero, 3000 GT....... wait. Most of them has been discontinued already, or has sucked for awhile. :dopey:
 
niky
The Kizashi is a fine little car, but that's where the problem starts.

Even the bantams have gone up in size recently... the Sonata, the Mazda6, etcetera... and there's just no reason in hell to buy a Kizashi over any of them.

The Kizashi drives nicely, mind you, but I can't for the life of me name one good reason to buy one over a Mazda6, which is just as light, bigger, and drives better, or even a Hyundai Sonata or a Kia Optima.

The Swift is pretty nice. If Ford-Mazda didn't have to create some sort of market distance between the Mazda2 and the Fiesta, they would have probably built something that drives like the Swift. Yes, yon Americans are missing out an a great little car.
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I bought a Mazda2 because the Swift isn't sold here. I would have absolutely bought the Swift if it was. The 2 is great fun though. 👍
 
Mind you, the Mazda2 is arguably the livelier of the two, because it's lighter, but the Swift offers similar steering and nimbleness along with a suppleness and solidity that mirrors the Fiesta.

Still, I feel there is no greater tool for bombing recklessly down a tight mountain road than a Mazda2. There are things I have done with that little car that I wouldn't dare try on anything else.
 
Suzuki has to take out $45M loan just to Close US dealers

American Suzuki is set to borrow up to $45 million to to close its automotive dealerships and freshen up its it motorcycle and marine business. Suzuki Motor Corporation will loan American Suzuki the funds at three percent below the London Interbank offered rate in order to offer dealer owners a cash payment in exchange for voluntarily abandoning franchise agreements. The company's 216 dealers have 10 days to make a decision on the matter. Under the plan, Suzuki would give dealer owners half of what they're owed in one lump sum, and the dealers would then be able to pursue the remaining debt through the company's bankruptcy procedure.
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