American Suzuki Motor Corp Files For Chapter 11 Bankruptcy
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DETROIT (AP) – American Suzuki Motor Corp. plans to file for Chapter 11 bankruptcy protection and cease selling automobiles in the U.S. as part of a plan to restructure its business.
The company is based in Brea, California, and is the sole distributor of Suzuki cars in the continental U.S.
It will focus on selling Suzuki motorcycles, all-terrain vehicles and marine outboard engines once it exits bankruptcy protection.
American Suzuki Motor says it decided to exit the car business because of slow sales, unfavorable foreign exchange rates and high costs due to U.S. regulatory requirements.
The bankruptcy and reorganization are unrelated to Japan-based Suzuki Motor Corp.
In documents filed with the Federal Bankruptcy Court for the Central District of California in Santa Ana, the company estimated that its debts and liabilities ranged from at least $100 million to $500 million. It also said it had 1,000 to 5,000 creditors.
American Suzuki said it had enough cash to operate during the reorganization and intended to honor all car warranties and buyback agreements. It will work with its car dealerships to help them make the transition to parts-and-service operations. In some cases, the dealerships will be closed, it said.
The reorganized company will retain the American Suzuki Motor name, the company said.
Read more FAQ from the company’s website, here.
(Copyright 2012 The Associated Press. All Rights Reserved.)