The court approved Suzuki’s Chapter 11 reorganization plan to stop its US auto sales and continue selling only ATVs, motorcycles and boat engines.
Thursday, February 28th, a US Bankruptcy Court in Santa Ana, California, approved Suzuki’s plan, leaving the automaker poised to complete its bankruptcy restructuring plan by March 11th. From now on Suzuki Motor of America will be a new, wholly-owned subsidiary of Suzuki Motor Corp. will sell only ATVs, motorcycles and marine engines, as dealers are close to sell the remaining vehicle inventory. In February, Suzuki dealers sold 1,764 vehicles.
“Today’s confirmation is a significant milestone and is one of the last remaining steps in our realignment and restructuring process,” said Freddie Reiss, American Suzuki’s chief restructuring officer.
Suzuki announced that the majority of its US dealerships will continue offering parts and service work to customers and the automaker will still honor vehicle warranties. In December, 213 Suzuki offered to 213 of its US dealers fixed operations-only contracts and cash to stop selling operations. The total sum reached $40 million, with the small dealers being offered $25,000 and the largest dealers receiving more than $1 million.
“We have kept generating deficits,” said Osamu Suzuki, the octogenarian chairman of Suzuki Motor Corp., in November. “We tried to make our business mainly by manufacturing small models, but that didn’t necessarily enable us to make our products in accordance with demand in America.”
by Ana Cezara Savin
) - Tuesday, March 5th, 2013 - filed under News
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