From an American Suzuki Motor Corporation press release:
AMERICAN SUZUKI MOTOR CORPORATION (“ASMC”) ANNOUNCES RESTRUCTURING AND REALIGNMENT TO FOCUS ON MOTORCYCLES/ATV AND MARINE DIVISIONS
ASMC to wind down and discontinue new automobile sales in continental U.S.
Consumers will be protected and all warranties will continue to be fully honored
BREA, Calif., Nov. 5, 2012 – American Suzuki Motor Corporation (“ASMC” or “the Company”), the sole distributor in the continental United States of Suzuki Motor Corporation (“SMC”) automobiles, motorcycles, all-terrain vehicles and marine outboard engines, today announced that it plans to realign its business to focus on the longterm growth of its Motorcycles/ATV and Marine divisions. Following a thorough review of its current position and future opportunities in the U.S. automotive market, ASMC will wind down and discontinue new automobile sales in the continental U.S. The Company has determined the best path to achieve this realignment in an efficient and orderly manner is to restructure its operations under chapter 11. The case will be filed in the United States Bankruptcy Court, Central District of California in Santa Ana.
Consistent with ASMC’s long history of standing by its products, owners of Suzuki automobiles will be protected. All warranties will continue to be fully honored and automobile parts and service will be provided to consumers without interruption through ASMC’s parts and service dealer network.
ASMC remains firmly committed to Motorcycles/ATV and Marine products, and these divisions are competitively positioned in their respective markets, allowing for long-term growth as economic conditions improve. The realignment is intended to better position ASMC for long-term success and is a return to the Company’s roots in the U.S. market, which began with motorcycles and has grown to include ATV and marine products. ASMC remains very proud of its high quality, high performance motorcycle, ATV and Marine products. The Company will continue to bring ASMC products to market, including its full lineup of sportbike, cruiser, touring, scooter, dualsport, motocross, off-road motorcycles and KingQuad ATV line, as well as its flagship DF300AP, state-of-theart DF20A, and DF15A, among other models. Additionally, ASMC is working to further build its market share through continued investment in additional support for dealers through marketing and advertising activities and sales promotion. Suzuki will continue to have a strong presence as a sponsor of teams in supercross, outdoor motocross and road racing.
In evaluating its position in the highly regulated and competitive U.S. automotive industry, ASMC determined that its Automotive division was facing a number of serious challenges. These challenges include low sales volumes, a limited number of models in its line-up, unfavorable foreign exchange rates, the high costs associated with growing and maintaining an automotive distribution system in the continental U.S. and the disproportionally high and increasing costs associated with stringent state and federal regulatory requirements unique to the U.S. market. While the decision to discontinue new automobile sales in the U.S. was difficult to make, today’s actions were inevitable under these circumstances. ASMC is dedicated to honoring its commitments to Automotive customers through and after the wind down of new automobile sales in the continental U.S.
An Orderly Process to Serve Consumers
ASMC intends to work within its current U.S. Automotive dealer network to help structure a smooth transition from new automobile sales to exclusively parts and service operations, or, in some instances, an orderly wind down of dealership operations. ASMC intends to market and sell its remaining U.S. automobile inventory through its Automotive dealer network. Through and after the restructuring, all warranties will be fully honored and automobile parts and services will be provided to consumers through the dealer network. ASMC intends to honor any automobile buyback agreements that are currently in place with financial institutions.
As part of its chapter 11 filings, ASMC will submit a proposed Plan of Reorganization and Disclosure Statement that specifies how the Motorcycle, ATV and Marine divisions will be maintained and enhanced, and how its relationship with Automotive dealers will be largely transitioned to support consumers and dealers through continued parts and service operations. SMC or its nominee intends to purchase ASMC’s Motorcycle, ATV and Page 2 of 2Marine businesses, as well as the Automotive service operation responsible for parts and warranties, through a new U.S. subsidiary that will retain the ASMC brand name.
ASMC believes it has sufficient cash on hand to operate its businesses during the restructuring. If necessary, ASMC will request permission from the Court to borrow additional funds from SMC needed during the restructuring.
Honoring Commitments
ASMC intends to operate its Motorcycles/ATV and Marine businesses as usual and is dedicated to completing the realignment process as smoothly and efficiently as possible. ASMC will continue to fully stand behind all of its products and honor all warranties from these divisions. ASMC is working with GE Capital’s Retail Finance and Commercial Distribution Finance businesses to continue providing motorcycles and ATV consumer financing programs and motorcycle, ATV and marine dealer inventory financing respectively. The Company expects existing agreements with other dealer and consumer financing providers to continue as well.
ASMC has filed a series of first day motions requesting approval to continue paying employee wages and benefits in the ordinary course, offering dealer incentives and payments under customer warranties. ASMC also expects to pay vendors in the normal course of business for goods and services delivered on or after its November 5, 2012 filing. Payments for goods received before ASMC’s November 5, 2012 filing will be made in accordance with the chapter 11 procedure.
SMC, the 100 percent interest holder in ASMC, is not a debtor in the chapter 11 filing. ASMC’s legal advisor on the restructuring is Pachulski Stang Ziehl & Jones LLP, and its financial advisor is FTI Consulting, Inc. Nelson Mullins Riley & Scarborough LLP is serving as special counsel on automobile dealer and industry issues. Further, ASMC has proposed the appointment of M. Freddie Reiss, Senior Managing Director at FTI Consulting, as Chief Restructuring Officer, and has also added two independent Board members to assist it through this period.
Additional information regarding ASMC’s business realignment can be found at the Company’s website, www.suzuki.com, or via an information hotline at 1-877-465-4819.
I guess that explains why Suzuki has been left in the dust by the other manufacturers in recent years.
Are you talking about their bikes?
Don't remember Suzuki ever making bikes in the US.
This is only ASMC, not SMC. The article says that SMC will be lending money to ASMC for their restructuring, so I guess that SMC has money. Just looks like their American division doesn't know what their doing.
You need to read the article, not just the words in it.
From an American Suzuki Motor Corporation press release:
AMERICAN SUZUKI MOTOR CORPORATION (“ASMC”) ANNOUNCES RESTRUCTURING AND REALIGNMENT TO FOCUS ON MOTORCYCLES/ATV AND MARINE DIVISIONS
ASMC to wind down and discontinue new automobile sales in continental U.S.
it plans to realign its business to focus on the longterm growth of its Motorcycles/ATV and Marine divisions.
ASMC will wind down and discontinue new automobile sales in the continental U.S.
ASMC remains firmly committed to Motorcycles/ATV and Marine products, and these divisions are competitively positioned in their respective markets, allowing for long-term growth as economic conditions improve.
Honoring Commitments
ASMC intends to operate its Motorcycles/ATV and Marine businesses as usual and is dedicated to completing the realignment process as smoothly and efficiently as possible. ASMC will continue to fully stand behind all of its products and honor all warranties from these divisions. ASMC is working with GE Capital’s Retail Finance and Commercial Distribution Finance businesses to continue providing motorcycles and ATV consumer financing programs and motorcycle, ATV and marine dealer inventory financing respectively. The Company expects existing agreements with other dealer and consumer financing providers to continue as well.
Additional information regarding ASMC’s business realignment can be found at the Company’s website, www.suzuki.com, or via an information hotline at 1-877-465-4819.
Dont take ANY of my advice, EVER, when it comes to riding motorycles.
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Re: Suzuki Files Chapter 11
One of the biggest issuew with the cars was that they have only a few models, so that means Suzuki car dealers are aligned with dealers that sell multiple lines. Those same dealers can make more money selling Hyundai, Kia, VW and other low cost brands so buyers that come in looking at a Kazashi or SX-4 would get pushed into a different brand. Dealers also typically kept little inventory, again, spend the space for better selling, more profitable brands that also used their volume to drive a lot more customers to the dealer. Also, development cost is much higher when your selling 25,000 cars a year (Suzuki) compared to 170,000 cars a month for Toyota
You need to read the article, not just the words in it.
"Members must not post any message to the discussion forums which is knowingly false and/or defamatory,"
That's too bad, I've been reading lots of praise in the car rags for the Kizashi. I think Suzuki really hurt themselves by making cheapie, poorly built cars for so long.
I wouldn't waste your money on a Forenza, I've had the car for 4 years, but it's still a piece of shit with barely any aftermarket. Plus the fact that the '08 is the last year they made the Forenza, you'd be way better off with that Kizashi.
I wouldn't waste your money on a Forenza, I've had the car for 4 years, but it's still a piece of shit with barely any aftermarket. Plus the fact that the '08 is the last year they made the Forenza, you'd be way better off with that Kizashi.
Dude that was sarcasm. No way in hell I'd ever buy a Forenza.
Dude that was sarcasm. No way in hell I'd ever buy a Forenza.
bought it out of pocket when I was starting college, I regret the day. Mainly because I blew all my savings on a cheaply made car and not hookers and blow.
bought it out of pocket when I was starting college, I regret the day. Mainly because I blew all my savings on a cheaply made car and not hookers and blow.
"Members must not post any message to the discussion forums which is knowingly false and/or defamatory," 
Dude that was sarcasm. No way in hell I'd ever buy a Forenza.
bought it out of pocket when I was starting college, I regret the day. Mainly because I blew all my savings on a cheaply made car and not hookers and blow.
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