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Suzuki to Stop Selling Cars In U.S. After Three Decades
TOKYO—Suzuki Motor Corp. said it would stop selling cars in the U.S., ending nearly three decades of sales in the world's second-biggest auto market after China as the yen's strength and a limited, compact-car-focused lineup have made it difficult to profit with such low sales.
Suzuki, which specializes in small cars and is the biggest car maker in the key emerging market of India, said it will now focus on motorcycles, all-terrain vehicles and marine equipment such as outboard motors in the U.S.
American Suzuki Motor Corp., the brand's sole distributor in the continental U.S., said Monday it had filed for Chapter 11 bankruptcy protection and will stop selling new cars.
The decision to exit the market reflects challenges that include low sales, a limited number of models, high production costs, and stringent state and federal regulations, the company said.
Suzuki entered the U.S. market in 1985 and sold a high of 102,000 vehicles in 2007. It had thought about raising its presence in the U.S. by expanding its lineup to include more larger vehicles such as the Kizashi midsize sedan. But those plans were sidelined by the onset of the financial crisis in 2008, and by a sharp rise in gasoline prices.
Following the collapse of General Motors Co. GM -0.04% in 2009, Suzuki had to dissolve its joint production venture in Canada with the U.S. partner.
Suzuki has since exported vehicles from Japan, but near-record highs of the yen against the dollar in recent years have cut into the profitability of its U.S. business. Meanwhile competition in the small car market from U.S. and South Korean rivals has intensified.
Suzuki sold only 26,266 vehicles in the U.S. in the last fiscal year ended March 2012, resulting in a $15.8 million net loss for American Suzuki.
Meanwhile, Daihatsu Motor Co., 7262.TO -0.64% another Japanese car maker that focuses on small cars, plans to pull out of the European market in January partly due to the yen's strength.
Suzuki shares were up 0.1% at ¥1,837 ($22.90) on the Tokyo stock market at midmorning. The car maker will report earnings for the July-September period Friday.
Suzuki said it will continue after-sales service for vehicles it has already sold in the U.S.
TOKYO—Suzuki Motor Corp. said it would stop selling cars in the U.S., ending nearly three decades of sales in the world's second-biggest auto market after China as the yen's strength and a limited, compact-car-focused lineup have made it difficult to profit with such low sales.
Suzuki, which specializes in small cars and is the biggest car maker in the key emerging market of India, said it will now focus on motorcycles, all-terrain vehicles and marine equipment such as outboard motors in the U.S.
American Suzuki Motor Corp., the brand's sole distributor in the continental U.S., said Monday it had filed for Chapter 11 bankruptcy protection and will stop selling new cars.
The decision to exit the market reflects challenges that include low sales, a limited number of models, high production costs, and stringent state and federal regulations, the company said.
Suzuki entered the U.S. market in 1985 and sold a high of 102,000 vehicles in 2007. It had thought about raising its presence in the U.S. by expanding its lineup to include more larger vehicles such as the Kizashi midsize sedan. But those plans were sidelined by the onset of the financial crisis in 2008, and by a sharp rise in gasoline prices.
Following the collapse of General Motors Co. GM -0.04% in 2009, Suzuki had to dissolve its joint production venture in Canada with the U.S. partner.
Suzuki has since exported vehicles from Japan, but near-record highs of the yen against the dollar in recent years have cut into the profitability of its U.S. business. Meanwhile competition in the small car market from U.S. and South Korean rivals has intensified.
Suzuki sold only 26,266 vehicles in the U.S. in the last fiscal year ended March 2012, resulting in a $15.8 million net loss for American Suzuki.
Meanwhile, Daihatsu Motor Co., 7262.TO -0.64% another Japanese car maker that focuses on small cars, plans to pull out of the European market in January partly due to the yen's strength.
Suzuki shares were up 0.1% at ¥1,837 ($22.90) on the Tokyo stock market at midmorning. The car maker will report earnings for the July-September period Friday.
Suzuki said it will continue after-sales service for vehicles it has already sold in the U.S.
I had to pull the dash, door panels, carpet, etc. to fix that turd up enough to sell it.
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