Japanese car manufacturer Suzuki Motor Corp. announced on Tuesday that it was ending its auto sales in the United States due to profitability and would instead focus on sales of motorcycles, ATVs, and marine boats. This decision showcases another Japanese manufacturing victim to the worldwide strength of the yen and weak exports, as well as a sign of low demand for Suzuki’s cars in the U.S.
American Suzuki Motor Corp., the company’s sole U.S. distributor, is filing for Chapter 11 bankruptcy with $346 million in debt. $173 million of that debt is owed directly to the Suzuki conglomerate. Suzuki is known for their auto lineup that focuses on small, fuel-efficient cars, and while they are ranked as the fourth best-selling car company in Japan, there is little interest in the brand in the U.S. and it has been unprofitable for some time.
In the month of October, only 2,023 Suzuki vehicles were sold across the entire U.S. The phaseout of cars is said it begin immediately as focus shifts to smaller, personal vehicles, such as motorcycles. American Suzuki has added that car dealerships will be compensated, although I’m sure that comes as little consolation to those with lots full of unsold models