Japanese auto maker Suzuki to exit U.S. car market

After three decades in the U.S. automobile market, Suzuki Motor recently announced that it will stop selling new cars.  It will continue to offer motorcycles, all-terrain vehicles, and marine outboard engines.  The Brea, California based American Suzuki Motor Corporation filed for bankruptcy protection (Chapter 11 restructuring petition) for its U.S. auto subsidiary.  Suzuki will continue to honor maintenance agreements and carry parts through its dealership network.  Previously Isuzu Motors and Saab Automotive left the U.S. market.

 

Suzuki began its operations in the U.S. with selling motorcycles.  It started selling cars in 1985.  Its best- selling brands included Samurai sport-utility, Swift compact car, and lately the SX4 small crossover.  During the last 10 months of this year, Suzuki sold over 21,000 vehicles in the U.S.  But low sales volume, flooding the U.S. market with new models from other manufacturers, unfavorable exchange rate between the U.S. and Japan, cost of maintaining dealership network, and regulatory environment are the main reasons for Suzuki’s exit.  Critics say Suzuki had trouble competing with other car makers and low profit margins due to low prices and sales.

Suzuki is the leading vehicle sales manufacturer in India.  But lately it is challenged by Hyundai Motor.