The fallout from Suzukis exit from US
Since American Suzuki announced it is filing for Chapter 11 and will no longer sell cars in the United States, it was cleared to borrow $45 million to pay dealers cash if they decide to shut their franchise. It will work with other dealers who want to become parts and service outlets. NADA is monitoring the situation closely.
Suzuki has sold only a little more than 21,000 cars in the U.S. this year, third worst-performing behind Saab and Smart among non-luxury brands, says Edmunds.com. Which brands will take up the slack? Kia and Nissan are the brands most shopped against Suzuki on Edmunds.com.
In a statement, Suzuki blames the bankruptcy on low sales volumes, a limited number of models in its lineup, unfavorable foreign exchange rates, and the high costs of maintaining a dealer network and of complying with stringent state and federal regulatory requirements unique to the U.S. market.
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