Suzuki to STOP Importing to USA ?

[afterburn 549]

My friend owns a Suzuki Cross over, brand new 6 months ago. He just got a letter from Suzuki that they will no longer import to USA.
Whats the Scoop? (Other then they just ruined the value of the car !)
Thanx !

[cairns]

The Wall Street Journal is your friend. This was in the paper about a week ago.

Suzuki's U.S. Exit Didn't Surprise Dealers .Article Stock Quotes Comments (2) more in Auto Industry News | Find New $LINKTEXTFIND$ ».smaller Larger facebooktwittergoogle pluslinked ininShare.6EmailPrintSave ↓ More .
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smaller Larger By CHRISTINA ROGERS
When Suzuki Motor Corp. 7269.TO -0.28%disclosed this week it would pull out of the U.S. auto market, the news came as little surprise to dealers who had struggled with a dramatic plunge in sales over the last five years.

A maker of inexpensive compact cars and small sport-utility vehicles, Suzuki first was hurt by its heavy reliance on consumers with poor credit who were among the first to leave the market when credit dried up in late 2008 and later by the strong yen, which made its vehicles more expensive.

The Japanese company also faced tougher competition in the low-priced car market from Korean rivals Hyundai Motor Co. 005380.SE +2.12%and Kia Motors Corp. 000270.SE 0.00%Suzuki was forced to import all its cars starting in 2009 after General Motors Co.'s GM -2.62%collapse forced it to dissolve a North American manufacturing agreement with the Detroit auto maker.

In 2007, before the credit crunch, Suzuki sold 101,884 vehicles in the U.S. Four years later, in 2011, its sales were down to just 26,619 cars and SUVs. So far this year, Suzuki has sold 21,888 vehicles. By comparison, Honda Motor Co. 7267.TO -0.47%sold about the same number of Civics in the month of October alone.

On Monday, dealers including Don Hicks, who owns a Suzuki dealership in Aurora, Colo., got the news that Suzuki's U.S. subsidiary, American Suzuki Motor Corp., filed for Chapter 11 bankruptcy protection. "I wasn't particularly surprised," Mr. Hicks said. "They had been really slowing things down for a while."

Suzuki's 220 U.S. dealers now face the task of winding down their stores, which includes selling off remaining vehicle stock. Suzuki plans to offer discounts on those cars to help move them, and will continue to honor its vehicle warranties and keep some parts and service locations open at some current Suzuki dealers.

The auto maker expects to offer U.S. dealers a cash payment in exchange for agreeing to scrap their franchise agreements, according to court documents. Suzuki's Canadian sales operations will continue and aren't affected by the bankruptcy filing.

Despite the U.S. auto industry's rebound, Suzuki is the latest brand to exit the American market in the last few years. Isuzu Motors Ltd., 7202.TO -1.38%another Japanese small-car brand, abandoned the U.S. car market in 2009.

General Motors Co. killed off three brands during its 2009 bankruptcy: Hummer, Pontiac and Saturn. Sweden's Saab, also once owned by GM, lived on briefly under a new owner, before filing for bankruptcy in late 2011.

American Suzuki, which began selling cars here in 1985, has long stood in the shadow of its bigger Japanese rivals, Toyota Motor Corp. 7203.TO -0.81%and Honda. Even with a line of low-priced cars, popular in emerging markets like India, Suzuki struggled to stand out in the U.S., the world's second largest auto market behind China.

The brand suffered when subprime lending collapse during the 2009 financial crisis. More than half of Suzuki's U.S. buyers were to customers with poor credit, a Suzuki executive said in 2010.

In its bankruptcy filing, which listed debts of $346 million and assets of $233 million, the company cited a litany of challenges: low sales, a limited dealer network, a scarcity of new models, tougher U.S. fuel economy standards and the Japanese yen's strength against the U.S. dollar.

More than half of its dealers, about 130, had been selling fewer than five cars a month, according to court filings.

Mr. Hicks, who has about 29 Suzuki-brand cars on his lot, said it had become apparent over the last few years that Suzuki was pulling back. New cars were only getting minor updates, as opposed to big design overhauls, a sign the company was investing less in its products, Mr. Hicks said.

John Medved, a Suzuki dealer just outside Denver, said he had heard rumors about Suzuki's departure. "But I felt pretty confident. They were survivors," he added. Now, he's concerned about what comes next. He has about 40 cars left at his Suzuki dealership.

"They got hit with the perfect storm," Mr. Medved said, noting the recession, the yen's strength against the U.S. dollar and a more competitive small-car market. And now, he added, they're trying to "leave with as much dignity as they can."

[aigel]

I hope he got a deal. Sounds like he can get parts from Canada. That's a real bummer.

G

[onewhippedpuppy]

Too bad, I've been in a Kizashi and thought it was a pretty decent little car. The SX4 AWD hatchback is just screaming to be used as a rally beater, I'm sure you can find used ones dirt cheap.

[afterburn 549]

Thanx Cairns......
I knew this place would help me out.......I knew $$$$$$ was the answer.
These cars are selling ! So.......what ever has to be.....Glad its not mine...I think they owe their customers some $$$$$$$$$$ !

[techweenie]

I lead the team that introduced the Samurai -- Suzuki's first automotive product in the US in '85. It was successful beyond their wildest dreams. US was the 103rd country to get the Samurai. We rolled out in only 8 markets and immediately put the Hamamatsu factory on 3 8-hour shifts to keep up with demand. Initially, some dealers were marking them up by up to $5000, and the base price, IIRC, was $5,695.

Sorry to see them go. But they never followed the initial mini Jeep models with anything terribly exciting. Suzuki Swift? Yawn.

[azasadny]

Mitsubishi is next to depart the USA...

[GWN7]

As mentioned they are going to keep selling them in Canada.

Suzuki Canada prepared to go it alone - The Globe and Mail

In a statement released this week, Suzuki Canada said it has no plans to discontinue new automobile sales in Canada, nor of entering any sort of court-supervised bankruptcy restructuring, as American Suzuki has done.

“Our two volume vehicles, the SX4 (especially the iAWD Hatchback) and Grand Vitara, are perfectly suited for the Canadian climate and I think that it is common knowledge that Canadians purchase smaller, more fuel-efficient vehicles versus the American consumers, which fits nicely into our product offering,” Bill Porter, senior vice-president of sales and marketing for Suzuki Canada, wrote in an e-mail this week, when asked how the firm expects to sell an entire lineup of Canada-only vehicles.

Porter acknowledges that the list of challenges may appear similar, but points out the company has experienced sales increases (of 1.4 per cent) in Canada this year, unlike in the United States.

He also notes that Suzuki Canada is a direct subsidiary of Suzuki Motor Corp. in Japan, and not a division of American Suzuki, and that staff levels at the company have not varied much from 100 or so workers in the past six years.

[GWN7]

If they are bankrupt and cease to exist I bet that is what will happen to any warranty.

[afterburn 549]

Wonders of wonders.Whats Next? Who is next ?
Suzuki is a very mature old company....The Cross Over is a pretty good car for the money.........Who turn to fall next? Is everyone one of them (car makers) on the brink?

[slow&rusty]

Originally Posted by azasadny

Mitsubishi is next to depart the USA...

Agreed..the writing is on the wall.

[KNS]

The South Koreans are really putting a dent in sales figures of even the big Japanese automakers. When Hyundai arrived here in the '80s I would have never considered one. Now, they're making pretty nice cars (still not sure if I'd buy one).

This is what keeps Toyota and Honda awake at night. In the same way Mercedes and BMW took a hit when Lexus was introduced here, now, Toyota is seeing their Lexus sales chipped away by the Hyundai luxury models. What comes around...

[legion]

Suzuki still sold cars in the U.S.?

[legion]

Originally Posted by azasadny

Mitsubishi is next to depart the USA...

The Mitsubishi factory is not far from my house. My next door neighbor is Japanese and works there in the executive office. I know two engineers that work there.

The UAW has been trying its hardest to kill the plant for the last decade, and it is a UAW plant. Sure, they took a steep wage cut a few years ago, but all of the union guys I know expect this to only last a year or two longer before they demand their "normal" wages again.

The thing is, stuff made at the plant doesn't sell. They just killed the Eclipse (I challenge you to find a 4th generation Eclipse on the road outside of Bloomington-Normal). They used to make 3-4 model for Chrysler. They don't do that anymore. They used to make the Montero Sport there. They don't do that anymore. Now they make the Outlander Sport there, which I wouldn't touch because of the ultra-fragile CVT.

My understanding is that they are running one 8-hour shift right now at something like half-speed. And they are usually put on multi-week shutdowns 2-3 times a year.

You want irony? Half the stuff made at the Normal plant is shipped to China. That's probably the only reason it is still operating.

[speeder]

Originally Posted by techweenie

I lead the team that introduced the Samurai -- Suzuki's first automotive product in the US in '85. It was successful beyond their wildest dreams. US was the 103rd country to get the Samurai. We rolled out in only 8 markets and immediately put the Hamamatsu factory on 3 8-hour shifts to keep up with demand. Initially, some dealers were marking them up by up to $5000, and the base price, IIRC, was $5,695.

Sorry to see them go. But they never followed the initial mini Jeep models with anything terribly exciting. Suzuki Swift? Yawn.

I had one. It was a little bit too small, but what a well-made little bomber. I really loved it. Even took it on a 2000 mile road trip to MN. once, absolutely 100% trouble-free.

[tcar]

It was all over the internet last week...

Didn't they just intro the Kizashi? The ad about how much better it was than an Audi etc. at slalom, stopping, etc. that was on incessantly?

By the way, the Suzuki Swift in Canada is actually a Daewoo Aveo... GM thought it would sell better with a Suzuki badge.

Bikes are unaffected.

[EarlyPorsche]

Originally Posted by azasadny

Mitsubishi is next to depart the USA...

They are still around!?

[Nostril Cheese]

Originally Posted by techweenie

I lead the team that introduced the Samurai -- Suzuki's first automotive product in the US in '85. It was successful beyond their wildest dreams. US was the 103rd country to get the Samurai. We rolled out in only 8 markets and immediately put the Hamamatsu factory on 3 8-hour shifts to keep up with demand. Initially, some dealers were marking them up by up to $5000, and the base price, IIRC, was $5,695.

Sorry to see them go. But they never followed the initial mini Jeep models with anything terribly exciting. Suzuki Swift? Yawn.

So I have you to blame for the burn scars on my legs.

[intakexhaust]

Originally Posted by legion

My understanding is that they are running one 8-hour shift right now at something like half-speed. And they are usually put on multi-week shutdowns 2-3 times a year.

You want irony? Half the stuff made at the Normal plant is shipped to China. That's probably the only reason it is still operating.

That is odd. What 'stuff' is shipped to China? Forklifts, auto's? Last time visiting there I checked out some little bugger all electric car. Illinois gave some incentives to keep the plant there.

As for Suzuki, quite a few dealers invested in stand alone store's / service facilities, some recent as 2010. Talk about a dealer eating crow. Customer's probably a little p.o. too.

[Racerbvd]

Originally Posted by techweenie

I lead the team that introduced the Samurai -- Suzuki's first automotive product in the US in '85. It was successful beyond their wildest dreams. US was the 103rd country to get the Samurai. We rolled out in only 8 markets and immediately put the Hamamatsu factory on 3 8-hour shifts to keep up with demand. Initially, some dealers were marking them up by up to $5000, and the base price, IIRC, was $5,695.

Sorry to see them go. But they never followed the initial mini Jeep models with anything terribly exciting. Suzuki Swift? Yawn.

I always liked them, never owned one, but had friends who owned em, and loved them.