U.S. Suzuki Distributor Files for Bankruptcy, Stops Sales
The Wall Street Journal reports that the U.S. distributor for Japanese manufacturer Suzuki Motor Corp. filed for Chapter 11 bankruptcy protection.
BREA, Calif. — American Suzuki filed for Chapter 11 bankruptcy protection and will end vehicle production in the U.S., according to The Wall Street Journal reports.
The decision to stop selling new cars reflects challenges that include low volume, a limited number of models, high costs and stringent state and federal regulatory requirements, the company told the WSJ Monday. Suzuki plans to realign its American operations to focus on motorcycles, all-terrain vehicles and marine products.
“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,” the company said in a statement.
According to reports, Suzuki will honor all warranties, and automobile parts and service will continue to be offered through the company’s network of dealers.
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