Zigwheels Home

Suzuki files for bankruptcy in USA

by Abhishek Chaliha Posted on 07 Nov 201210,808 Views5 Comments

The American Suzuki Motor Corporation has filed for bankruptcy protection in the state of California with $346 million (Rs 1873 crore) of debt. The company will now be focusing its efforts on emerging markets in India and other Asian car markets

 

Suzuki

 

 

Suzuki Motor Corporation’s Indian subsidiary, Maruti Suzuki, may be the market leader in India but in the United States of America it is an altogether different story for the Japanese car maker.

 

The American car market is dominated by large cars, a segment in which Suzuki does not have a strong hold. Added to this, a strong yen has made it harder for Suzuki to make profits on its cars as they are manufactured in Japan and shipped to the US. 

 

As a result, the American Suzuki Motor Corporation, the sole distributor of Suzuki cars in the United States of America, has filed for bankruptcy protection in the state of California with $346 million (Rs 1873 crore) of debt.

 

American Suzuki Motor will stop selling its cars in the United States of America the moment stocks run out. The Japanese car maker will honour the warranty periods of its cars in the country and its car business will be limited to servicing its cars on the road. 

 

The parent company, Suzuki Motor Corporation will bail out its motorcycle, All Terrain Vehicle and outboard engines business in the United States as they have a suitable product range for the country. 

 

In the near future, Suzuki will be concentrating its efforts on the Asian car markets, particularly India as the company has the right product portfolio to match market requirements. 

 

Also read: Maruti Suzuki stops Kizashi import

Post Your Comment

Do you like this story?

2014 Suzuki Access launched at Rs 53,223

by Team ZigWheels

The new Access 125 gets minor cosmetic upgrades...

Suzuki V-Strom 1000 ABS: India Review

by Sarmad Kadiri

A pleasant V-twin character, supple ride quality...

Mahindra readies new two-wheelers for August launch

by Team ZigWheels

Mahindra Two-Wheelers will be introducing a...


 
SPECIAL COVERAGE

Hyundai Elite i20: Special Coverage

The premium hatchback segment is changing fast, and how? Not too long ago the VW Polo and Fiat...

Tata Zest: Special Coverage

The Zest is a new compact sedan from Tata Motors that will take on the Honda Amaze, Hyundai Xcent...

 
Help us know you better!
Take this survey

Read Next Story