Suzuki to Discontinue Auto Sales in Continental U.S.

American Suzuki Corp. (ASMC), the distributor of Suzuki Motor Corp.(“SMC”) automobiles, motorcycles, all-terrain vehicles and marine outboard engines, announced it plans to realign its business to focus on its non-automotive products.

The company stated it plans to wind down and discontinue new auto sales in the continental U.S. ASMC also stated it determined the best way to accomplish this was by filing under chapter 11.

To ensure its customers are taken care of, ASMC plans to honor all warranties and to provide automobile parts and service through its parts and service dealer network. The company added that it intends to honor any automobile buyback agreements currently in place with financial institutions.

ASMC stated it made this decision after it determined its automotive division was facing a number of serious challenges in the U.S. automotive marketplace. These challenges include the division’s low sales volume, costs associated with growing and maintaining an automotive distribution system in the continental U.S., and increasing costs associated with meeting state and federal regulations in the U.S.

The company plans to submit a Plan of Reorganization and Disclosure Statement that will detail how it will maintain and improve its motorcycle, ATV and marine divisions, and how it plans to transition its relationship with its dealers to support them and its customers through ongoing parts and service operations.

ASMC stated more information about its business realignment can be found by calling an information hotline at 1-877-465-4819.

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