We kind of knew it was coming, but still the news arrives as something of a shock: American Suzuki has filed for bankruptcy and will cease selling vehicles in the U.S. as part of its restructuring plan. When current inventories are gone, new Suzukis will vanish from U.S. shores.
If you’ve been eyeing a Suzuki, act now for a new one or watch the CarGurus used listings for older models. American Suzuki will still exist in the U.S., but selling new cars won’t be part of its business plan.
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.
These are all problems that have been mentioned as we’ve discussed the very real potential of Suzuki going under. Seeing it actually happen is a bit of a shame, because the vehicles are darned good.
American Suzuki said it has enough cash to operate during the restructuring and intends to honor all car warranties and buyback agreements. It will work with some U.S. car dealerships to help them transition into parts-and-service operations. Others will be closed.
Suzuki motorcycles, ATVs and watercraft will not be affected, and Suzuki will continue to sell automobiles in other countries, including its home market of Japan.
As a former owner of a 2007 Suzuki SX4, I can say with complete conviction that the brand’s affordable quality will be missed here.
Will you miss new Suzuki vehicles in the United States?