After nearly three decades of struggling for success in the U.S. market, Suzuki Motor Corporation will cease selling cars in the United States. The news came with the announcement that its sole U.S. distributor, American Suzuki Motor, had filed for Chapter 11 bankruptcy, citing $346 million in debt and $233 million in assets.
As Bloomberg Businessweek reports, Suzuki has no plans to shutter dealerships, which will be used to provide service for vehicle owners. The automaker plans to sell through its existing stock of vehicles, so no specific date has been set for its departure.
While most automakers enjoyed growing U.S. sales in 2012, Suzuki saw its tiny market share shrink even further. Through October, it had sold just 21,188 new vehicles; by comparison, Hyundai sold 50,271 new vehicles in the U.S. in October alone. Despite building solid cars, the automaker’s lack of advertising and weak dealer network plagued sales, as did over-hyped reports of danger with Suzuki’s early SUV offerings.
Also, don’t forget that you can get discounted new car pricing with a free quote through qualified local dealer partners.
Worse, when the brand had marketing dollars to spend, it wasted them in bizarre campaigns. It’s hard to forget the media blitz that attempted to position the Kizashi sedan against the Audi A4 and BMW 3 Series instead of targeting cars like the Volkswagen Jetta and the Nissan Altima.
Suzuki will now turn its attention to India and Asian markets, where it enjoys strong sales against rivals like Hyundai and Toyota. Expect no changes for Suzuki’s motorcycle , ATV and marine engine business in the U.S. market.
Kurt Ernst has been passionate about automobiles and driving nearly his entire life. His early years were shaped working in the family service station, though his real passion was auto racing. After graduating from the University of Colorado, Kurt spent a year club racing with the Sports Car Club of America, before focusing on a business career in marketing and project management. Later, his passion for writing and the automotive hobby found him freelancing for a variety of automotive news sites, including Automotive Addicts and Motor Authority, where his work was syndicated and appeared in several national publications. Recognized as an expert in the automotive field, Kurt joined Hemmings Motor News as an Associate Editor in 2013, and in the years since has progressed to Editor, Hemmings Daily; Managing Editor for Hemmings Motor News, Hemmings Classic Car, Hemmings Muscle Machines, and the Hemmings Daily; and now, Managing Editor, Hemmings Auctions. Kurt was instrumental in organizing the Hemmings Motor News Concours d’Elegance from 2013-2019, and has served as a judge at this event and The Vintage Racing Stable Concours d’Elegance. A Skip Barber Racing School graduate and prolific writer, Ernst is also skilled in copyediting, project management, brand development, and public relations.
