Orange County Business Journal

American Suzuki to End Car Sales in U.S.

Kari Hamanaka Tuesday, November 6, 2012

Brea-based American Suzuki Motor Corp. plans to file for Chapter 11 bankruptcy, with plans to eventually halt sales of its vehicles in the U.S., the company said Monday.

The automaker, part of Japan-based Suzuki Motor Corp., said it plans to undergo a restructuring to focus on U.S. sales of its Motorcycles/ATV and Marine divisions, which share office space with the auto division in Brea.

American Suzuki said it will continue to provide service and parts to vehicle owners through its dealer network and suppliers.

The restructuring does not include any operations in Japan.

The company cited a number of challenges facing its automotive division in the U.S. as the reason for its decision, including low sales, a limited vehicle lineup and the high costs of growing its distribution system.

American Suzuki’s sales are down 4.7% so far this year to 22,231 vehicles. The company currently has a 0.2% share of the U.S. market.

Suzuki began selling its Kizashi sedan in 2009, with hopes of making it the halo vehicle in its lineup and selling car buyers on the idea of affordable luxury.