And another one bites the dust. Suzuki joins the ranks of Isuzu, Saturn, Saab, Pontiac, Oldsmobile, Mercury and Plymouth.
According to Fox News, American Suzuki Motor Corporation filed for Chapter 11 bankruptcy protection on Monday. It was reported that American Suzuki will cease selling automobiles in the U.S. and focus on selling motorcycles as part of its restructuring plans.
In its filing with the U.S. Bankruptcy Court in the Central District of California, American Suzuki estimated that its debts at least $100 million to as much as $500 million. And they stated that it had between 1,000 and 5,000 creditors.
American Suzuki Motor said intends to honor all car warranties and buyback agreements. They will work with its car dealerships to help them transition into parts-and-service operations or to close operations.
It had been speculated that Suzuki would not survive the Great Recession in the U.S. Market due to slow sales, unfavorable foreign exchange rates and U.S. regulatory requirements. In October, American Suzuki sold only 2,023 vehicles.
Who is next? Mitsubishi?