After filing for chapter 11 bankruptcy protection on Tuesday, American Suzuki Motor Corporation has confirmed that the Japanese-based manufacturer will end sales of cars in the U.S. Instead, Suzuki's American arm will focus on motorcycles, ATVs and watercraft.
"Following a thorough review of its current position and future opportunities in the U.S. automotive market, ASMC will wind down and discontinue new automobile sales in the continental U.S.," the Brea, Calif.-based company announced. It said all customer warranties will continue to be fully honored and automobile parts and service will be provided to consumers without interruption through ASMC's parts and service dealer network.
Explaining the decision, American Suzuki cited low sales volumes, a limited number of models in its lineup, unfavorable 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."
Suzuki has sold its cars in the United States since 1985.