Due to the sudden rise in demand after the bankruptcy-related announcement of American Suzuki Motor Corp. to discontinue automobile sales in the U.S., it will have to import about 2,500 more vehicles. Still, we have to mention that the company will continue to sell motorcycles, ATVs and marine motors. The U.S. distributor of Suzuki cars told dealerships to make the most of their “one last chance.”
Last Thursday, Freddie Reiss, the company’s chief restructuring officer, confirmed that no more cars are being produced for the U.S. market. It was revealed earlier this month that the November sales of American Suzuki increased by 22% to 2,224 units.
According to dealers, sales grew in December, mostly due to huge incentives and a seven-year warranty program. But Reiss said that even with the surge in sales, the automaker still won’t be able to justify staying in the U.S.
On November 5, American Suzuki Motor Company’s (ASMC) independent directors voted to file for bankruptcy to stop losses in the U.S. market, evade the costs of federal regulations and close down a sales network where 69% of dealers sell less than a handful of cars each month.
From the start of the month until November, Suzuki reported sales of 23,412 vehicles in the U.S., a 3% drop over the same period in 2011.
The SX4 small crossover made up around 50% of Suzuki's sales in 2012 with 11,809 units sold. Suzuki’s sales in the U.S. exceeded 100,000 in 2007.
The company said that dealers will sell the cars that are left and will continue to offer parts and warranty work as well as other repairs. According to court papers, American Suzuki intends to reorganize its motorcycle, boat and all-terrain vehicle business and post sales via separate dealers.
Last Thursday, the U.S. Bankruptcy Court in Santa Ana, Calif., granted three motions to help it close the auto-dealer network and reorganize the motorcycle and boat business.