RE: Suzuki is Saying Sayonara to US Auto Market

In short, Suzuki has not seen the light of day in quite some time. Automobile blogger Chris Nagy from Automoblog.net, says, “American Suzuki Motor Corporation [has been] fighting too much of an uphill battle inside a small congested car market.” To no surprise, Suzuki filed for bankruptcy protection in the auto-mobile industry in the U.S. as part of their plan to restructure their entire organization. In essence, Nagy states the plan as the permanent halt on the sales of Suzuki cars in America, and to put a larger focus on selling motorcycles and ATVs.

To paint a stronger image, Bloomberg states states that

American Suzuki had assets of $233 million and debt of $346 million as of Sept. 30, according to Chapter 11 documents filed yesterday in U.S. Bankruptcy Court in Santa Ana, California.

 
Income Statement
From my perspective, it seems only appropriate that Suzuki backs out of the American market. With the recent recession in 2008, the automotive industry simply fell displaying major decline in sales. Most of the automotive companies were able to restablize; however, as Nagy says best,  “the sale of Suzuki cars in the United States [was just] judged too unprofitable.” 

Despite Suzuki being a heritage brand in the American industry dating back 27 years ago, it never saw consistent sales and improvement. It only makes sense to drop out of this market or else the company will just see more problems in the future. Their image has already been tainted since the Consumer Union issued their warning of rollover awhile back.

They’ve been in a slump, and by doing dropping out, they can focus all their resources to what works: motorcycles, ATVs, and marine product businesses.

Sources:
http://www.automoblog.net/2012/11/08/suzuki-saying-sayonara-to-us-auto-market/
http://www.bloomberg.com/news/2012-11-06/american-suzuki-motor-files-for-bankruptcy-protection.html

 

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