#suzuki

Only 6 dealers haven’t taken a buyout offer from Suzuki – of the 219 Suzuki dealers in America, 213 took the offer from American Suzuki, including the top 50 dealers by volume.

Almost as soon as ASMC declared its intentions for Chapter 11 bankruptcy, Suzuki Canada, Inc. sent out the following statement:

“Suzuki’s customers can confidently continue to purchase new vehicles, obtain service, parts and accessories and take full advantage of Suzuki Canada’s warranty program,” said Bill Porter, Senior Vice President, Automobile Sales & Marketing, Suzuki Canada. “Suzuki Canada, including its Automotive Division, remains fully open for business in Canada, and will be honouring all customer commitments.”

“While Suzuki Canada will continue to monitor market conditions in light of the U.S. filing, we have no current plans to change Suzuki Canada’s operations as a result of the events in the U.S.,” Mr. Porter said. “Suzuki Canada remains proud of the upcoming 2013 model year for new automobiles, which will continue uninterrupted as planned”.

All 12 North American employees have been officially notified that their jobs are saved.

Being a Suzuki dealer is surely one of America’s least enviable jobs; franchise holders must choose whether to accept a cash settlement and a contract to provide parts and service in exchange for their franchises, or whether they want to fight the matter in court.

American Suzuki has received court approval to borrow $45 million to help restructure their dealer network following a Chapter 11 filing.

When the news came out last night of American Suzuki Motor Corporation (ASMC) filing for Chapter 11 bankruptcy, I was glad to be validated in my suspicions, but sad that a potentially great opportunity had been wasted due to mismanagement and short-sightedness on behalf of its Japanese management.

In other regions, Suzuki does an excellent job catering to the needs of each domestic market. In India, through their long time partnership with Maruti (which has since turned into full ownership of the once state-owned automaker), Suzuki enjoys double digit market share that is the envy of every other automaker in the country. Maruti Suzuki has control over product, they understand the needs of Indians looking for new cars, and they have enough financial input into SMC’s bottom line that the executives in Japan have no choice but to listen.

Late last night, we were contacted by an employee of American Suzuki Motors Corp, who reached out to TTAC to vent his frustrations regarding the downfall of ASMC’s auto business. The picture painted by this employee is one of a highly dysfunctional operation, focused only on tomorrow and never beyond that, a revolving door of Japanese management and deep antipathy for American workers.

Though we’ve confirmed the identity of this Suzuki employee, they wished to remain anonymous due to the sensitive nature of their remarks.

American Suzuki Motor Corp may have gone bust, but Suzuki cars will continue to be sold in Canada, where the SX4, Kizashi and Grand Vitara are still offered (but not the Equator pickup).

(NSFW language)

Months ago, we began our Suzuki Death Watch, and today, we hear the executioner’s song. Suzuki’s North American distribution arm filed for bankruptcy, and will end automotive sales in the United States. Slow sales, an unfavorable exchange rate and a limited lineup of vehicles can all be blamed for the demise of a company that was ignored all too often. Luckily, Suzuki’s motorcycle and powersports business remain intact. We’ll have more tomorrow.

Wrestling fans and auto enthusiasts have a lot in common.

They can be sickeningly loyal to their favorites. Even when it’s obvious their one and only favorite is well past their prime.

They also have a bit of a dopamine problem.

Before there was the Geo Metro (a rebadged Suzuki Cultus, there was the Chevrolet Sprint (also a rebadged Suzuki Cultus). U.S. gas prices dropped below a buck per gallon during the middle 1980s, which had the effect of forcing the oil-income-dependent Soviet Union into bankruptcy even faster than predicted, with end-of-Cold-War results. On top of that, cheap gas prices meant that only the most tight-fisted of cheapskates felt that buying a tiny three-cylinder car built by a motorcycle company made any sense at all. Still, enough Sprints were sold that I see them in junkyards every now and then.

While not mentioned explicitly, this is Suzuki’s SX4 replacement – the Dodge Caliber S-Cross Concept – which is all but ready for dealer showrooms for 2013.

Last month, Bertel reported on a Wall Street Journal story that revealed that BMW USA officials inflated sales figures in their zeal to overtake rival Mercedes-Benz in US sales. The automaker was offering dealers cash to basically sell the cars to themselves, under the guise of the units being used as customer demonstrators. The WSJ piece was met with laughter in the halls of car companies, as the practice is common to most automakers. The hilarity has officially ended: a former American Suzuki sales rep was just indicted for wire fraud for conspiring with a dealer to inflate sales figures.

Two high-volume Suzuki dealerships in South Carolina are at the center of a federal fraud case, as a dealer and Suzuki district manager are among those indicted on three counts of conspiracy to commit wire fraud.

Japan’s carmakers are preparing for the next big one, and move to higher ground, says The Nikkei [sub]. Many Japanese car plants are near or next to the water, some on reclaimed land. Large level tracts are rare in Japan, and by building cars at the waterfront, the ship can come to your loading dock. After the March 11 earthquake and tsunami, perspectives changed.