Suzuki has won approval for its Chapter 11 plan to stop selling cars in the US and concentrate instead on the company's powersports products. Judge Scott C. Clarkson of the US Bankruptcy Court for the Central District of California approved the plan after the company's creditors agreed to the conditions.

Suzuki will now sell its motorcycle, ATV and marine divisions to the newly minted Suzuki Motor of America subsidiary under the Suzuki name. The new company will be wholly owned by Suzuki Motor Company. This is the final piece of the company's restructuring puzzle.

The company says it will now be able to grow its powersports businesses here in the US and also provide auto parts and service to current Suzuki owners through what's left of the company's dealer network. You can check out the brief press release on the bankruptcy plan below.
Show full PR text
Court Approves American Suzuki Motor Corporation's Chapter 11 Plan

BREA, Calif., Mar. 1, 2013 – American Suzuki Motor Corporation (the "Company")
today announced that the Honorable Scott C. Clarkson of the U.S. Bankruptcy Court for
the Central District of California in Santa Ana approved the confirmation of the
Company's Chapter 11 Plan, which creditors overwhelmingly accepted. Confirmation of
the Plan clears the way for the Company to complete its restructuring process, which is
expected to occur on March 31, 2013.

As previously announced, the Plan approved the Company's sale of its Motorcycles/ATV
and Marine divisions and Automotive parts and service operation to a newly organized,
wholly-owned subsidiary of Suzuki Motor Corporation. The subsidiary will operate in the
continental U.S. as Suzuki Motor of America, Inc. and will use the Suzuki products brand
name.

"Today's confirmation is a significant milestone and is one of the last remaining steps in
our realignment and restructuring process," said M. Freddie Reiss, the Company's Chief
Restructuring Officer. "During the next few weeks, we will take final steps to implement
the Plan, which will allow the Company to sell its Motorcycles/ATV, Marine, Automotive
parts and service divisions. This will promote the long-term growth of the
Motorcycles/ATV and Marine divisions, as well as providing automotive parts and
service through the dealer network."

A copy of the Plan is available at www.omnimgt.com. Additional information regarding
Company's business realignment can be found at the following website,
www.suzuki.com, or via an information hotline at 1-877-465-4819.


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    • 1 Second Ago
  • 12 Comments
      • 1 Year Ago
      [blocked]
      mbukukanyau
      • 1 Year Ago
      Suzuki's biggest problem is the incomplete dance they are engaged in with Volkswagen.
        GR
        • 1 Year Ago
        @mbukukanyau
        No, Suzuki was fumbling over themselves long before VW came into the picture. The fact that Suzuki was tapping VW for additional engines instead of developing turbocharged versions of their own preexisting engines was sign Suzuki was going about in a questionable and high-risk way. Killing off the Wagon-R in Europe, not importing the Swift to the US, allowing GM to brand junk Daewoos as Suzukis, poor marketing of real Suzukis, and poor dealer network long preexisted the Suzuki-VW fallout. I love Suzuki's cars and engineering, but their management in the US was pitiful. A bankruptcy from failure was simply the denouement of such incompetence.
          Travis C. Vasconcelo
          @GR
          I think it was the other way around. VW wanted an inroad to Suzuki's market in India and Asia where they are traditionally slow sellers and hoped the partnership with Suzuki would give them access to Suzuki's world class small car technology and markets. Suzuki thought they were going to be equal in the partnership and share technologies. VW wanted this to be the precursor to a hostile take over. Suzuki is fighting for their lives at the moment under this hostile Nazi-esque takeover by a very bitter VW. I used to like VW...but they are nothing short of a pre-bankruptcy old GM anymore. The same car, the same platform, and the level of options determines the brand name. There was a time when VW was leading edge...now they are nothing short of a wanna-be that got too big too fast.
          GR
          • 1 Year Ago
          @GR
          I actually own a Suzuki. It's my second one. I really like the cars. I also dislike VWs, but to say that Suzuki's failure in the US and Canada is because of VW is just naive. I am well aware that VW wanted Suzuki's small car technology, but Suzuki's decline in North America long pre-existed any VW-Suzuki relations. Suzuki was basically trying to go about the US market with the least effort possible from Japan. They wanted other makers to supply larger engines (GM was the source until 2008 and Suzuki was looking at VW since then) and took the risk of allowing Daewoos branded as Suzuki for more brand presence. ASMC also did not spend much on marketing their cars. They also never imported the Swift even when in 2008 and 2009, US consumer demand for small cars skyrocketed and brands like Mini enjoyed success. Suzuki in the US was merely trying to sell cars in the laziest, most indirect way possible. Their US market strategy is a huge difference from rivals like Honda, yet in Japan, Honda and Suzuki go head to head in market presence. Honda offers a wider line-up, but Suzuki far outsells Honda in kei-cars which is Japan's top selling car segment. Suzuki has always treated the North American market like a bastard child and the Asian market as the favored one. The result today is merely a consequence of that.
      Bryan Lund
      • 1 Year Ago
      As far as both Mitsubishi and Suzuki goes, Mitsubishi is not leaving the U.S. And as far as both car manufacturers go, nobody ever kicks a dead horse. Both are great carmakers. Great. Nothing worse than great car manufacturers.
      Bryan Lund
      • 1 Year Ago
      I eagerly await their plan to come back to the U.S. The Suzuki Kizashi is not only a great car it is indeed the best midsize car ever!
      djrroar1
      • 1 Year Ago
      They needed to get rid of the distributor structure so the parent company can control what goes on in the U.S. market. Honda,Toyota, etc. got rid of most of the distibutors long ago. They might consider the U.S. market for cars again but not anytime soon. It was not a product issue, the distibutors made a mess of things in the U.S.
      GR
      • 1 Year Ago
      As others have posted, Suzuki's failures are not the result of their cars, but the result of bad marketing, decisions, and management. Their cars are actually very good for the money, but when they failed to have insight on the changing market and poorly marketed what they have in their line-up, their decent cars couldn't save them. Customers looked elsewhere. Stories of the Wagon R in Europe and the lack of the new Swift in the US are examples that Suzuki took missteps in these markets. They tried to tell consumers what they should buy rather than listening to their consumer about what to offer. I do hope that Suzuki does one day return to the US. I can only imagine that the future will be a better market for smaller, more fuel efficient vehicles which is precisely Suzuki's niche in Asia.
      Travis C. Vasconcelo
      Maybe this new Suzuki Motor of America can return to the US someday with automobiles after they get their respective selves back together. They should have done this as soon as the GM debacle with the crappo Daewoo cars was over. To reinvent themselves. They may have survived that way.
        S.
        • 1 Year Ago
        @Travis C. Vasconcelo
        I own a Kizashi + a Suzuki motorcycle, but when they rebadged those crappy Korean cars they ruined their brand perception. There was just no way to recover.
      breakfastburrito
      • 1 Year Ago
      I had the money all ready for a Swift Sport 6-speed, EVO magazines' "best driver's car for the money" - but they never brought it... such a shame. Their focus on SUV's was a complete miss in the U.S. Kizashi Jetta knockoff was very late and stale. SX4 was a hunt for Subaru sales. Teaming up with VW, after they were so brutal with the Porsche brand... So many stupid decisions, by execs who don't care about cars at all. Any 16 year old kid would've made better choices.