The Suzuki brand may be big in India but on the
other side of the world it is facing big problems. Suzuki operates in the name
of American Suzuki Motor Corporation in USA which has filed for bankruptcy. The
ASMC is facing low volume sales from past 2-3 years and its latest models
SX4, Kizashi and Grand Vitara has not managed to pull the company from
losses.
Suzuki mentioned that it was difficult to make
decision to stop selling its car in US but it was inevitable under current
situations. However Suzuki will continue to sell motorcycles, all terrain
vehicles and marine outboard in the US market. The bankruptcy doesn’t involve
the parent Suzuki Motor Corporation of Japan. ASMC debt ranges from $100 to
$500 million.
A
Suzuki statement -
“These challenges include low sales volumes, a limited number
of models in its line-up, unfavourable foreign exchange rates, the high costs
associated with growing and maintaining an automotive distribution system in
the continental U.S. and the disproportionally high and increasing costs
associated with stringent state and federal regulatory requirements unique to
the U.S. market.”
0 Comments