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Suzuki to exit US market, files for bankruptcy

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.”
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