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Suzuki's US division to end car sales, already filed for bankruptcy

 Suzukis US division to end car sales, already filed for bankruptcy
2012 Suzuki Swift Sport 13.12.2011

Motorcycle and marine engine operations to continue.

Suzuki’s American division has decided to stop selling cars due to decreasing demand after the recession.

In a statement made on Monday, American Suzuki Motor Corp. said that they have filed for Chapter 11 bankruptcy protection. Motorcycle and marine engine operations will continue, but car sales will be halted because of “unfavorable foreign exchange rates, disproportionally high and increasing costs associated with meeting more stringent state and federal automotive regulatory requirements”.

As a result, Suzuki is leaving the U.S. market after other smaller Asian brands like Daihatsu, Isuzu and Daewoo, while their competitors (Hyundai, Kia especially) have seen a considerable growth in the last few years.

In 2003 Suzuki revealed a plan to increase U.S. sales above 200,000 units annually but it failed as they only managed to hit half of that in 2006 and 2007. During Suzuki's downfall, the industry saw a ten percent or more increase after the automotive industry started recovering, while through the first ten months of 2012 auto sales have gone up by 14 percent.

Source: Suzuki

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Comments (4)

 KheirFrancis KheirFrancis
suzuki shouldnt just give up like that, I could think of many ways they couldve came up, the swift, new models, hybrids,that sport crossover concept, im sure they came up with many ideas but didnt pursue them. suzuki has always been that alternate brand when you couldnt find anything you wanted from the other car brands and there decent cars for decent prices. I think they should give it another try, and push there ideas into overdrive and give these companies some good competition.
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November 21, 2012 1:26 am
 TomasramonCorrea TomasramonCorrea
I have owned 2 Suzukis and they were nice, reliable cars.
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November 7, 2012 12:00 pm
 Renyeo Renyeo
Suzuki should set up manufacturing facilities stateside to hedge against currencies fluctuation. The Swift Sport, I believe, will do well there.
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November 7, 2012 2:17 am
 PAA PAA
Shame, Suzuki is making nice mini vehicles whose only dis might be their brand name.
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November 7, 2012 12:14 am