Suzuki to stop selling cars in U.S., files for Chapter 11 bankruptcy protectionBy Angel Cuala on Nov 6, 2012 in Automobile, Business, United States •
American Suzuki Motor Corporation (ASMC) announced this Tuesday, November 6, 2012 that it is set to stop selling cars in the U.S., after it files for Chapter 11 bankruptcy protection on Monday night, citing economic conditions including the currency exchange rate, market trends, and huge debts as main reasons.
Image Credit: GlobalSuzuki.com
According to a press release at GlobalSuzuki.com this Tuesday, American Suzuki, a subsidiary of Suzuki Motor Corporation (SMC) which distributes automobiles, motorcycles, ATVs, marine products and related parts and accessories in the U.S. has arrived to the decision to file for bankruptcy and stop selling cars in the country.
As noted in the announcement, ASMC, located in Brea, California, has a debt of $346 million, as of September, 30, 2012, including a $173 million debt to Suzuki group companies, including SMC, with the company still to continue selling its motorcycle, ATV, and marine products businesses in the U.S.
“As a way to reorganize the company, wind down its automobile marketing business and concentrate on its motorcycle, ATV, and marine products businesses, ASMC has determined to file the Chapter 11.” American Suzuki said on their press release, citing four achievements they will get from filing for bankruptcy.
“As to the influence on financial performance of SMC, we will closely monitor the progress of ASMC‘s reorganization under Chapter 11 of the U.S. Bankruptcy Code from now, and disclose promptly once a matter for which disclosure is required has occurred.” American Suzuki added.
Among the goals the ASMC has cited to achieve after they stop selling cars in U.S. include: to facilitate a smooth changeover to a network of authorized service and parts dealers from the present U.S. automobile dealer sales network, and to to manage effectively any potentially expensive and time-consuming legal battles.
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