Raise your hand if you saw this one coming. Okay, everyone put your hand down now, American Suzuki Motor Corporation, the American arm of Suzuki cars, announced late today that they are filing Chapter 11 Bankruptcy and will cease selling cars in the United States.
"American Suzuki Motor Corporation (“ASMC” or “the Company”), the sole distributor in the continental United States of Suzuki Motor Corporation (“SMC”) automobiles, motorcycles, all-terrain vehicles and marine outboard engines, today announced that it plans to realign its business to focus on the long-term growth of its Motorcycles/ATV and Marine divisions. Following a thorough review of its current position and future opportunities in the U.S. automotive market, ASMC will wind down and discontinue new automobile sales in the continental U.S. The Company has determined the best path to achieve this realignment in an efficient and orderly manner is to restructure its operations under chapter 11. The case will be filed in the United States Bankruptcy Court, Central District of California in Santa Ana."
Suzuki will continue to honor all warranties through the current dealer network, at least, through those of which are not shut down completely. The brand will continue to sell motorcycles/ATV and marine products in the US. Current Suzuki owners can check this website for updates and information.
Suzuki will continue selling cars for as long as they've got them. Anyone willing to step up for a deal?
1. How will the realignment and chapter 11 process affect current automobile owners?
Consistent with Suzuki’s long history of standing by its products, owners of Suzuki automobiles will be protected. All warranties will continue to be fully honored, in accordance with their terms, and automobile parts and service will be provided to consumers without interruption through our parts and service dealer network.
We express our gratitude to the many loyal auto consumers who have supported Suzuki along the way over our 25 years in the U.S.
Consumers can direct any additional questions they may have to our hotline at (877) 465-4819.
2. What if I just recently bought a Suzuki car, have a car that is still under warranty or need parts for my car in the future?
All warranties will continue to be fully honored, in accordance with their terms, and automobile parts and service will be provided to consumers without interruption through our parts and service dealer network.
3. What happens to the financing agreement for my Suzuki automobile?
There should be no impact to your existing financing agreement.
4. Will my current dealer be part of Suzuki’s parts and service network going forward?
We are determined to maintain a sufficient parts and service network to continue to serve our customers.
5. How long does American Suzuki plan to maintain its parts and service network for the current Suzuki automobile consumers?
We are dedicated to completing this realignment in a manner that protects our U.S consumers. All warranties will continue to be fully honored, in accordance with their terms, and automobile parts and service will be provided to consumers without interruption through ASMC’s parts and service dealer network. We intend to continue to provide parts and service, as long as there is consumer demand, for a reasonable period of time beyond the warranty period.
Motorcycles/ATV and Marine
6. How will the realignment and chapter 11 process affect American Suzuki motorcycle, ATV and Marine product owners?
We will continue to fully stand behind all of our products and all warranties will be honored – just as they have for the past four decades in this country.
We remain firmly committed to our motorcycles, ATV and marine products. Through our realignment, we intend to work closely with, and continue to support, our nationwide network of dealers and the many consumers who have embraced these products since Suzuki’s beginnings in California in the 1963. U.S. consumers will continue to enjoy the full line-up of Suzuki motorcycles, ATVs and outboard motors.
7. Does this affect my motorcycle, ATV or marine product warranty?
We intend to honor warranties and provide parts and service will continue uninterrupted – just as we always have.
152k miles - niece drives it now
2017 Prius Prime - about 65 mpg factoring in electricity cost
2018 Pacifica Hybrid - wife's
I just read about it in autoblog.com and was going to post here only to find this thread already here.
It's sad about Suzuki of America, but not surprising. Their cars are fine (real Made in Japan Suzuki's), but they suffered a string of bad luck and bad decisions that led to this.
I credit GM's awful management (selling junky Daewoo's as Suzuki's) and Suzuki's idiocy for letting them do so. Suzuki was hoping for better brand recognition, but it turned into brand infamy and then irrelevance for most American consumers. You can't package shit under a brand name and think it's going to do the brand any good.
Suzuki's failed partnership with VW was also damaging. One of the main complaints by auto critics of the Kizashi was the rather bizarre one engine offering. No turbo and no V6. We even gripe about it here. The reason why was because VW's deal in the partnership with Suzuki was that they would supply engines for Suzuki's larger cars like the Grand Vitara and Kizashi. When VW never held up their end of the deal, Suzuki went to FIAT as a source of small diesel engines for cars in other markets. This Suzuki deal with FIAT led to the arbitration between VW and Suzuki. The result is no engines other than Suzuki's own 2.4 liter 4 cylinder. This is a base-type engine for everyone else with their direct-injection turbos and former V6s.
Suzuki also totally blew it with the Swift. It's really the best Suzuki product overall. It's raved about everywhere it's sold (Japan, UK, India, etc.) yet a total no show in the US. When compacts came into demand after the US economic crisis, everyone realized the value of a good compact in their fleet. Ford, GM, and Chrysler scrambled and delivered the new Focus, Cruze, and Dart among other sub-compacts to replace their deadbeat offerings. Suzuki did nothing different.
Suzuki blamed the poor US dollar and the strong Japanese yen as a poor exchange rate for selling the Made in Japan Swift in the US. What they really did was blow their best chance with a car that would of embarrassed everything else in its class. They practically let the Fiesta, Mini, Fiat 500, Yaris, Fit, etc. take over what Suzuki is a master of outside the US. Suzuki is a renown specialist in sub-compacts and ultra compacts (Kei-cars in Japan). The fact that they didn't act in the US is just a contributor to their failure here.
Lastly, Suzuki had horrid marketing. Their ads were stupid or forgettable. Come on, comparing a rocket-powered sofa chair to a Kizashi??? It's just not what the mid-size buyer is going to pay attention to or take seriously. An ad is supposed to influence buying decisions, not serve has cheap entertainment. It also became more of a mockery of the Kizashi when it compared itself to Audi's and Acura's. Neither the public nor the auto press were buying that. Reviews by auto critics constantly highlighted the shortcomings of the Kizashi compared to the A4 and TSX because Suzuki set itself up for that. Idiots.
Had they compared themselves to their real competition (Accord, Camry, Malibu, Jetta, Altima, Fusion, Sonata, etc.) then they would have made a relevant argument for the Kizashi. I have no doubt the Kizashi is a better car overall than all those I listed. It doesn't help that we few owners are the only ones who know that or even care.
Suzuki ended up selling the Kizashi in very few numbers to people like us: those who had already owned Suzuki's before or those who by happenstance came close enough to a Suzuki Kizashi to take notice. I am sure this applies to the rest of their line up. This is not the way to sell cars.
It's just surprising to me how poorly Suzuki did in the US. They are the #1 brand in India and sell the #1 car in Japan. They are actually hugely successful in Asia. It baffles me that they always played the American market as a small, oddball offering and let other car companies control them to oblivion in the US.
Overall, I have no regret buying my Kizashi even a few months before this bankruptcy filing. The Kizashi is a great car made by a good brand. It's just sad when a good auto maker drives off into the sunset for reasons other than the quality of their products.
That being said, I will continue to follow Suzuki and check out their new products every time I visit Japan, hoping that they return to the US one day again.
This may be the end of Suzuki in America, but only the beginning for me and my Kizashi.
This is very sad news for Suzuki USA, too bad they didn't put more money into proper advertising and pushing their products into the market. Oh and why would they not sell Swift in the USA?!?! It's their highest selling car here in Australia (and probably the rest of the world) and it's one of the best small hatches money can buy (not to mention excellent reliability). Also surprising they haven't pushed Vitara into the market either considering its a great off-road vehicle.
Not the news I want to hear. I have my new Kizashi for just over two weeks and really like it. I am in BC, Canada and not sure how this announcement in their US operations will affect the Canadian Operations.
I'm not comfortable with this situation and will talk to my dealer regarding my options.
BM-Power wrote:This is very sad news for Suzuki USA, too bad they didn't put more money into proper advertising and pushing their products into the market. Oh and why would they not sell Swift in the USA?!?! It's their highest selling car here in Australia (and probably the rest of the world) and it's one of the best small hatches money can buy (not to mention excellent reliability). Also surprising they haven't pushed Vitara into the market either considering its a great off-road vehicle.
Suzuki claimed that the exchange rate would of killed profits from selling Swifts in the US. The car would have only been made in Japan for the US market, therefore subject to the exchange rate of the strong Japanese Yen vs. the weak US dollar. That would basically make it hard for Suzuki to make money on it. Huge brands like Toyota, Honda, Nissan have opted to build in the US to avoid the vulnerability of exchange rates and import taxes. Suzuki was simply too small in the US to ever open a plant in the US.
I really think the Swift was the chance they blew. Their decision not to sell it in the US just made Suzuki irrelevant for many curious consumers in the US. You would be surprised to see how many auto enthusiasts rant about Suzuki not offering the Swift in the US. Many of them claim they would of given the Swift a try. Suzuki counted on the SX4 too much and developed the Kizashi too late. The Swift was their best product that they simply kept from the US. Some would say it's karma.
But realistically, we are going to see an influx soon of members. Why?
Because Suzuki and dealers with Suzuki's are going to discount the cars for liquidation. They are going to clear inventory and they will be cheap as the corporate exodus will diminish its already low resale value. This would mean that smart people who caught on to the fact that the Kizashi is a great car will jump on the deals. I bet some will end up here.
The near future would also be a great time for current members to get another Kizashi or replace one. Their price can only take a dive. If you plan to keep your car a long time, it's actually a great investment. The Kizashi is not a bad car by any means, but more a victim of unfortunate circumstances.
I am personally planning to take my Kizashi for a 300,000 mile banzai charge. I'm cracking open the synthetic oils.
I read this about 10 mins ago and jumped over to the forums because I knew you'd guys have loads of info.
Unfortunately, 3 weeks ago my Kizashi was totaled and due to the car practically saving my life and my passengers, I only want another Kizashi. I hate hearing this news - I would assume if I buy another one in the coming weeks that the warranty still stands just as those who have already purchased and/or those still under warranty?
Even though im in Australia thats shitty news. I would definately buy suzuki again im in love with my car. I wish more people knew about the quality of these beautifully made cars (the kizashi at least)
