Holy Crap! Suzuki America files for Chapter 11

[Slide Panda]

http://www.asphaltandrubber.com/news/american-suzuki-motor-company-files-bankruptcy/

"Certainly wanting to bury the news in the after-work hours, American Suzuki Motor Corporation has just announced that it is filing for Chapter 11 protections, as the American subsidiary of Suzuki Motor Corporation heads into bankruptcy and business restructuring."

"As part of its chapter 11 filings, ASMC will submit a proposed Plan of Reorganization and Disclosure Statement that specifies how the Motorcycle, ATV and Marine divisions will be maintained and enhanced, and how its relationship with Automotive dealers will be largely transitioned to support consumers and dealers through continued parts and service operations. SMC or its nominee intends to purchase ASMC’s Motorcycle, ATV and Marine businesses, as well as the Automotive service operation responsible for parts and warranties, through a new U.S. subsidiary that will retain the ASMC brand name."

Whoa!
So it appears they are getting out of the car game and intend to stay in Motorcycle, ATV and Marine... but whoa

[carbmon]

Finally!  The autos have been a drag on ASMC for a long time, hopefully this will free-up resources for the power sports lines in the long run for the US.

I understand the autos are doing pretty well for SMC in SE Asia & India (models not in the US market) but they just never really penetrated the market enough to make a go here (US).

Wishing the best for my friends at ASMC HQ, stressful times I'm sure but it's been rough there for years so hopefully now there's light at the end of the tunnel.

[SDRider]

Not really much of a surprise.  Their cars were always crap.

[Kev M]

I don't see this freeing up much money for other divisions.

It's not like the bikes have been selling like gang busters either, at least in the US (again maybe doing better globally).

It was just a model year or two ago that they brought in NO NEW BIKES because they had plenty of leftovers in dealers and warehouses.

Suzuki Marine is a niche player in the US too.

[Kev M]

Not really much of a surprise.  Their cars were always crap.

Hardly...

The Sidekick/Tracker/Vitara line were rugged, overbuilt little trucks. VERY durable. Hell the 4-banger motors used in em were often used in light aircraft they were so bulletproof.

Granted the cars and trucklets were more economy than typical US luxury vehicles, but they lasted.

It was more an issue of poor support to the dealers and limited network.

[spolic]

The problem is that their cars have no soul, no passion.

[ute]

The problem is that their cars have no soul, no passion.

gotta disagree I had a Samurai for 10 years ...great vehicle with real heart ..unstoppable off road ...equal to any of my mod'd jeeps



almost identical to mine

[Nero-92]

gotta disagree I had a Samurai for 10 years ...great vehicle with real heart ..unstoppable off road ...equal to any of my mod'd jeeps



almost identical to mine

Have to agree with you although I'm a green oval fan for many years I'd say the vitara would give any of your 4x4's a run for there money

[SDRider]

gotta disagree I had a Samurai for 10 years ...great vehicle with real heart ..unstoppable off road ...equal to any of my mod'd jeeps



almost identical to mine

Easy to tip over too!  Fun for the whole family...

[Slide Panda]

Easy to tip over too!  Fun for the whole family...

So are motorcycles...

Just sayin'

[Goat_Herder]

Hopefully the restructuring will help out its motorcycle business, which has been stale for the past 2-3 years.  The other 3 Japanese seem to have survived and re-invented themselves except for Suzuki.  Then again, maybe the US market is now too crowded for 4 Japanese manufacturers...

[Travman]

Hopefully the restructuring will help out its motorcycle business, which has been stale for the past 2-3 years.  The other 3 Japanese seem to have survived and re-invented themselves except for Suzuki.  Then again, maybe the US market is now too crowded for 4 Japanese manufacturers...

I don't know. I haven't seen sales numbers for any of the Japanese motorcycles for several years. Not sure how they have reinvented themselves. Seems like they have basically retreated. Honda brought out their 250 sport bike and Kawasaki revamped their small Ninja, but it seems like everything else they've tried in recent years has not sold. Meanwhile BMW and Ducati are grabbing market share with new products.

[SDRider]

So are motorcycles...

Just sayin'

Well, you kind of expect that with a 2 wheel vehicle.  Not so much with a 4 wheel one.   

[militar3rd]

Ducati was about to go bankrupt before they went regain their status by designing the revolutionary Multistrada. I hope the same would be for the Suzuki. They always had good motorsport products, but their cars are ridiculous, save some few good ones. I was a salesman for 2 years and whenever I sold a Suzuki to a customer I feel somewhat bad, because these cars aren't known for their reliability.

Issues:
- One customer, after driving 9 miles from the dealership stalled in the major interstate.
- Another lived 80 miles away and when she got home, she couldn't start the car next day.
- This hispanic college student saved for 1 year before buying a seemingly good deal ($5000 for a Suzuki 2006 Forenza I think, 20,000 miles); he came back the next day and told me that he wants a refund. My boss gave him the technicailities and shit, the gist was he couldn't.

I don't see any reason why they couldn't invest in the car spectrum... at all. Their GSXR 1300 engines are very reliable and cheap, even the 1000's, put that into a sports car frame (i.e. Miata, TC...) then you have a competent car.

[Bladecutter]

Suzuki missed the mark with their auto offerings.

Their campaigns said that they are a motorcycle company that builds cars.
Well, where is the sports car that is just as fun to drive as their supersport motorcycles?

If they had one sports car in their lineup, and marketed it as being just as fun as a GSXR 600, they would have had people curious, and in their showrooms.
But, they never did.

Small thing to point out is that most Americans don't like motorcycles.
Saying that your small cars and cuv's are like motorcycles isn't going to get those people in your showrooms.

And then, the motorcyclist owners that do show up, and test drive your products, are then going to realize that your marketing is nothing more than a bunch of bs.

Wrong way to market a small car company in the American market.
Good example in how to ruin a company, though.

BC.