Wheels24

Bankrupt Suzuki to exit the US?

2012-11-06 12:20

NEW YORK, USA - Japanese automaker Suzuki said it would shut down its vehicle business in the United States and file for bankruptcy, citing a strong yen and weak demand for its cars in the US.

American Suzuki Motor Corp (ASMC), the automaker sole distributor, said it has debts of R3-billion. ASMC said that it would continue selling motorcycles, all-terrain vehicles and marine products in the US.

Suzuki sold 26 000 vehicles in the US in 2011, a fraction of rival Japanese automakers such as Toyota, Nissan and Honda.

WEAK DEMAND

ASMC said: "(We) recognised it will be unable to maintain profitability with respect to the automobile marketing business."

The Suzuki division, which employs 365 people, said it has faced difficulties due to the Japanese currency and weak demand for its vehicles in the US market.

Warranties on vehicles already sold in the US market would be honoured despite the filing, it added.

The Japanese firm has focused much of its attention on emerging markets including India where its profitable Maruti Suzuki joint venture is the nation's biggest automaker.

AFP

Comments
  • robbie.crouch - 2012-11-06 16:02

    Should have stayed with what they knew best... BIKES.

  • brak.jan - 2012-11-06 16:30

    It's a shame, they make some good cars

      christo.stone - 2012-11-06 22:44

      As long as they stay in SA :) I'd love to own a Suzuki car one day.

      brak.jan - 2012-11-07 08:42

      I also hope so Christo, losing your foothold in the world's second largest market for new cars (behind China, on sales) is not good...

  • gary.bloom.967 - 2012-11-07 07:49

    While good solid cars, they lack the finishing inside of the others. The SX4 feels somewhat dated compared to others from Kia.

      thando.gqabaza - 2012-11-07 08:21

      But the Swift has one of the best interiors in the class...

      brak.jan - 2012-11-07 08:28

      i must agree with thando, suzuki's interiors have better fit and finish than the koreans

      gary.bloom.967 - 2012-11-07 12:19

      Sit inside a Kia Soul and tell me that it doesn't have a better interior than a SX4?

      brak.jan - 2012-11-07 13:29

      @gary - i'm not referring to how it looks, but rather how it’s made. Quality of materials used, finishing, amount of soft touch materials, etc. I’m also comparing the two brands in general, not model specific. The Koreans are not bad; I just feel that Suzuki’s quality is better.

  • braamc - 2012-11-07 07:56

    Great cars, sorry to hear

  • riotousr - 2012-11-07 11:57

    Their Kizashi is equally not doing well in SA either.

      shaunisaac.malambo - 2012-11-07 18:41

      The Kizashi was withdrawn from the Indian market, due to low sales volume. Great car but, the name should've 'stayed' in Japan.

      brak.jan - 2012-11-08 14:28

      Yes, the Kizashi is not selling well. They should offer it with better engines (turbo charged and/or diesel engines). What is it with Suzuki and Kia/Hyundai with the 2.4L inline 4, normally aspirated petrol engine? We are not in the 80’s anymore.....

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