ASIA NEWS NETWORK

WE KNOW ASIA BETTER



» Business

Suzuki Motor to end car sales in US market

Publication Date : 07-11-2012

 

Suzuki Motor Corp. will withdraw from the auto sales business in the United States, excluding Hawaii, the company announced Monday.

On the same day, American Suzuki Motor Corp. (ASMC), Suzuki's wholly owned US distributor, filed for bankruptcy protection based on Chapter 11 of the US Bankruptcy Code. The company aims to launch a turnaround by focusing its resources on motorcycles, outboard boat motors and other units.

As of September 30, ASMC had US$346 million in debt, of which $173 million was owed to Suzuki group companies.

Suzuki started selling automobiles in the United States in 1985, but its sales slumped, and it concluded the strong yen would prevent the business from returning to profit.

Suzuki reported a 12.8 billion yen in loss on disposal for its total investment in ASMC, and posted an allowance for bad debt of 9.7 billion yen on its claims against ASMC.

In fiscal 2011, Suzuki sold about 26,000 units in the United States, which accounted for about 1 percent of the group's total sales.

 

Mobile Apps Newsletters ANN on You Tube