BREA, Calif. – American Suzuki Motor Corp. says it will file for Chapter 11 bankruptcy protection and cease selling automobiles in the U.S. as part of a plan to restructure its business.

The company, based in Brea, Calif., is the sole distributor of Suzuki Motor Co. vehicles in the continental U.S.

It said Monday that it will focus on selling Suzuki motorcycles, all-terrain vehicles and marine outboard engines once it exits bankruptcy protection.

American Suzuki Motor says it decided to exit the car business because of slow sales, unfavorable foreign exchange rates and high costs due to U.S. regulatory requirements.

The company says it has enough cash to operate during the restructuring and intends to honor all car warranties and buyback agreements.

The bankruptcy and reorganization are unrelated to Japan-based Suzuki Motor Corp.

There is no word on what Suzuki Canada will do, but if we were to guess, we would not expect them to continue selling and certifying vehicles in Canada if there is no support south of the border.

We may have unknowingly reviewed every last new Suzuki available in Canada this year:
Test Drive: 2012 Suzuki SX4 JLX AWD
Comparison Test: Suzuki SX4 Sport Sedan – 2012 vs 2008
Test Drive: 2012 Suzuki Grand Vitara JLX-L
Test Drive: 2012 Suzuki Kizashi Sport AWD

UPDATE: According to The Globe and Mail, Bill Porter of Suzuki Canada has confirmed Suzuki will remain in operation in Canada for the time being.

“Suzuki Canada, including its automotive division, remains fully open for business in Canada and will be honouring all customer commitments,” Bill Porter, Suzuki Canada’s senior vice-president of sales and marketing said in a statement late Monday.

 

Source: AP / Suzuki