Suzuki Sells More Cars in the US After Filing For Bankruptcy image

American Suzuki Motors says that demand for its vehicles increased after the company filed for bankruptcy.

In November, American Suzuki’s sales increased 22% to 2,224 units and they continued to go up in December, mainly because the seven-year warranty program and the generous incentives. Freddie Reiss, the company’s chief restructuring officer, said that even if sales increased unexpectedly, the company still has no reason to stay in the US auto market.

“When we told dealers, ‘We have one last chance,’ the dealers said, ‘Go get them,’” M. Freddie Reiss, said today in an interview. “No more cars are being manufactured” for the U.S. market, he said.

On November 7th, Japanese automaker Suzuki put its US distributor into bankruptcy to end losses in this market and avoid costs of federal regulations. The automaker closed a sales network in which 69% of dealers were selling less than 5 cars a month. The company is expected to sell 22,000 vehicles in the US by the end of this year, compared with 120,000 units before 2008.

Although dealers will sell the remaining vehicles, they will continue to offer warranty work, parts and other repairs. Meanwhile, American Suzuki aims at reorganizing its all-terrain vehicle, motorcycle and boat business through separate dealers.