Autoblog

Court approves Suzuki bankruptcy plan

Zach Bowman — Fri, 05 Apr 2013 09:28:00 EST

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.

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Court approves Suzuki bankruptcy plan originally appeared on Autoblog on Fri, 05 Apr 2013 09:28:00 EST. Please see our terms for use of feeds.

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Suzuki ending auto sales in Canada, too

Jonathon Ramsey — Wed, 27 Mar 2013 09:52:00 EST

Filed under: Car Buying, Suzuki, Earnings/Financials, Canada

Suzuki of Japan has reportedly made the decision that almost everyone assumed it would make when it announced it was leaving the US market: when the 2014 model year concludes, it will no longer sell cars in Canada. With six employees overseeing its auto business in Canada and a dealer network that has shrunk to 55 outlets in the country, we can't say we're shocked.

At the time of the US announcement, however, the senior VP of sales and marketing in the automotive division of Suzuki Canada said it would be able to survive on its own because, among other reasons, Canadians prefer smaller, more fuel-efficient cars that fit the company's offerings. Five months later, after some time to think about a 30-percent drop in sales to open up 2013 instead of the 1.4-percent increase in sales that Suzuki Canada posted last year, things have evidently changed.

The Globe and Mail reports that as is in the US, Suzuki's motorcycle, ATV and marine divisions in Canada will remain.

Suzuki ending auto sales in Canada, too originally appeared on Autoblog on Wed, 27 Mar 2013 09:52:00 EST. Please see our terms for use of feeds.

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Suzuki Chapter 11 bankruptcy plans approved by US court

Jeremy Korzeniewski — Tue, 05 Mar 2013 06:58:00 EST

Filed under: Government/Legal, Suzuki, Earnings/Financials

It's pretty much a done-deal now, folks. A US bankruptcy judge has approved Suzuki's plans to wind down its operations in the States. As part of Suzuki's Chapter 11 proceedings, its automotive unit will cease to exist in the US, leaving the motorcycle, ATV and marine units to function as Suzuki Motor of America.

It's not clear how many vehicles are left on the 219 remaining Suzuki dealership lots - the company reported sales of 1,764 in February - but the automaker has assured customers that warranty service and parts will remain available. Suzuki made an investment of $45 million to ensure its past and current customers aren't completely left in repair-work limbo.

Check out the complete announcement from Suzuki below for more information, and please join us in mourning the loss of the Kizashi sedan and SX4 hatch, two vehicles we are legitimately going to miss when this whole sordid affair is done and over with.

Continue reading Suzuki Chapter 11 bankruptcy plans approved by US court

Suzuki Chapter 11 bankruptcy plans approved by US court originally appeared on Autoblog on Tue, 05 Mar 2013 06:58:00 EST. Please see our terms for use of feeds.

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Suzuki demand in US rises after bankruptcy

George Kennedy — Wed, 26 Dec 2012 16:30:00 EST

Filed under: Car Buying, Hirings/Firings/Layoffs, Suzuki

Following word that Suzuki is ceasing car sales in America, it appears that demand for the Japanese automaker's wares have increased. According to The Detroit News, American Suzuki Motor Corp. will import an additional 2,500 vehicles to quench demand that has jumped since the company announced that it was filing for bankruptcy and ending sales in America.

Dealers recently informed their sales personnel that no more vehicles would be produced and that this was the final push. With heavy incentives and a seven-year warranty as value-adds, November sales for Suzuki rose in November some 22 percent, up to 2,224 vehicles. December sales also rose, but neither month's gains outweigh the long-term losses for the automaker. While Suzuki will sell roughly 22,000 cars this year in the US, it was selling about 120,000 annually before 2008.

As it stands, Suzuki will sell off the rest of its vehicle inventory, including the 2,500 additional units, and dealers will continue to provide parts an warranty work. With all of this negative news for the automaker, it's impressive to see an interest in Suzuki vehicles even with the imminent shuttering of its North American car sales.

Suzuki demand in US rises after bankruptcy originally appeared on Autoblog on Wed, 26 Dec 2012 16:30:00 EST. Please see our terms for use of feeds.

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American Suzuki gets $100M in financing to go out of business... buy more cars?

Jonathon Ramsey — Fri, 07 Dec 2012 13:30:00 EST

Filed under: Government/Legal, Suzuki, Earnings/Financials

American Suzuki Motor Corporation (ASMC), which declared bankruptcy in early November, has been approved by the courts for up to $100 million in debtor-in-possession financing to enable it to shutter its US car business. ASMC had received a $45 million loan from the Japanese parent company, Suzuki Motor Corporation (SMC), last month in order to make repayment deals with its franchise dealers. At the same time, ASMC was awaiting final court approval of this larger loan.

Out of the newly approved funds, $50 million can be used for operations, and oddly, the other $50 million can be put toward purchases of new inventory from SMC. That's right, even as existing inventory was headed for a smooth exit with the help of incentives, customer demand for orphan Suzuki models is so strong - last month's sales were up 22 percent compared to 2011 - that ASMC plans to purchase 2,500 additional cars from SMC that were built after the bankruptcy announcement. Good news for the owners of those vehicles: the top 50 dealers, representing more than 98 percent of ASMC sales, will become parts and services centers.

The press release below has more information. Unlike its recent tenure here, the end of Suzuki cars in the US looks like it's going rather well.

Continue reading American Suzuki gets $100M in financing to go out of business... buy more cars?

American Suzuki gets $100M in financing to go out of business... buy more cars? originally appeared on Autoblog on Fri, 07 Dec 2012 13:30:00 EST. Please see our terms for use of feeds.

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Incentives aid smooth Suzuki wind down

Zach Bowman — Tue, 04 Dec 2012 13:29:00 EST

Filed under: Car Buying, Budget, Suzuki, Earnings/Financials

American Suzuki is continuing to offer buyers substantial incentives even as the company winds down operations. Those looking to nab a new Suzuki vehicle will find rebates of between $500 and $2,000 and zero-percent financing for up to 72 months as dealers look to liquidate inventory following the automaker's filing for Chapter 11 bankruptcy protection last month. The strategy is working so far. Last month saw Suzuki sell a total of 2,224 vehicles, up 22 percent compared to the same time period in 2011. The Japanese manufacturer says it will continue the incentives through December.

Suzuki had around 5,000 units in dealer inventory in the US when it went into bankruptcy protection, with an additional 1,500-1,700 vehicles headed to dealers at that time. The company says it will continue to honor warranties moving forward using its current dealer network. Most of the dealerships will become Suzuki service and parts stores after American Suzuki shutters car sales in the US.

Incentives aid smooth Suzuki wind down originally appeared on Autoblog on Tue, 04 Dec 2012 13:29:00 EST. Please see our terms for use of feeds.

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Suzuki has to take out $45M loan just to shutter US dealers

Zach Bowman — Thu, 08 Nov 2012 16:30:00 EST

Filed under: Government/Legal, Suzuki, Earnings/Financials

Bloomberg reports American Suzuki is set to borrow up to $45 million to to close its automotive dealerships and freshen up its it motorcycle and marine business. Suzuki Motor Corporation will loan American Suzuki the funds at three percent below the London Interbank offered rate in order to offer dealer owners a cash payment in exchange for voluntarily abandoning franchise agreements. The company's 216 dealers have 10 days to make a decision on the matter. Under the plan, Suzuki would give dealer owners half of what they're owed in one lump sum, and the dealers would then be able to pursue the remaining debt through the company's bankruptcy procedure.

U.S. Bankruptcy Judge Scott C. Clarkson granted American Suzuki interim authority to borrow the funds, but Bloomberg reports the company will likely return to court in a few weeks to seek up to $100 million. According to Richard Pachulski, a lawyer for Suzuki America, the automaker may owe its dealers somewhere around $50 million.

Suzuki has to take out $45M loan just to shutter US dealers originally appeared on Autoblog on Thu, 08 Nov 2012 16:30:00 EST. Please see our terms for use of feeds.

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Suzuki could disappear from new car market quickly thanks to low inventory

Jeffrey N. Ross — Tue, 06 Nov 2012 16:30:00 EST

Filed under: Suzuki, Earnings/Financials

Yesterday's announcement that American Suzuki has filed for bankruptcy is all but a death blow for the Japanese automaker's 246 US dealers, but if there's any good news coming out of the situation, it could be the fact that the whole process will likely be quick and painless rather than drawn out. WardsAuto is reporting that with the current inventory and average sales numbers so far this year, there figures to be about three months left for Suzuki's new-car business in the US given current sales rates.

In October, Suzuki sold 2,023 units - a five percent increase over last year - but with just 5,549 left in inventory, it shouldn't take too long to wind down operations. Sales for the brand peaked 2007 with more than 100,000 units sold, but this year, Suzuki is barely on pace to reach a quarter of that amount, with just 21,188 units sold so far in 2012. In addition to poor sales, WardsAuto also notes that Suzuki faced problems due to its reliance on customers with subprime credit.

Suzuki will continue to sell motorcycles, ATVs and marine engines in the US, while the brand's cars will still be on sale in other countries including Canada and Mexico.

Suzuki could disappear from new car market quickly thanks to low inventory originally appeared on Autoblog on Tue, 06 Nov 2012 16:30:00 EST. Please see our terms for use of feeds.

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American Suzuki Motors files chapter 11, will no longer sell cars in the United States

Jeremy Korzeniewski — Mon, 05 Nov 2012 19:39:00 EST

Filed under: Government/Legal, Suzuki, Earnings/Financials

As much as we knew it was a possibility, we have to say that Suzuki's announcement this afternoon that it is filing chapter 11 bankruptcy proceedings caught us a bit off guard. American Suzuki Motor Corporation - the sole distributor of Suzuki automobiles in the United States - will realign its business to focus on motorcycles, ATVs and the marine market.

What does this mean in simple terms? In short, new Suzuki cars and trucks will no longer be sold by Suzuki in the United States once current supplies run out. Period.

Suzuki cites "low sales volumes, a limited number of models in its lineup, unfavorable foreign exchange rates, the high costs associated with growing and maintaining an automotive distribution system in the continental US and the disproportionally high and increasing costs associated with stringent state and federal regulatory requirements unique to the US market."

Motorcycles, ATVs and watercraft will not be affected. Current owners of Suzuki cars, trucks and sport utility vehicles will have their warranties honored, and parts will reportedly be made available. Suzuki will continue to sell automobiles in other countries, naturally, including its home market of Japan.

Read the complete announcement from Suzuki below, and check out this official website set up by Suzuki for current owners.

Continue reading American Suzuki Motors files chapter 11, will no longer sell cars in the United States

American Suzuki Motors files chapter 11, will no longer sell cars in the United States originally appeared on Autoblog on Mon, 05 Nov 2012 19:39:00 EST. Please see our terms for use of feeds.

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