American Suzuki wants bankruptcy protection
BREA, Calif. American Suzuki Motor Corp. on Monday filed for Chapter 11 bankruptcy protection and said it will cease selling automobiles in the U.S. as part of a plan to restructure its business.
The company, based in Brea, Calif., is the sole distributor of Suzuki Motor Co. vehicles in the continental U.S.
In documents filed with the U.S. Bankruptcy Court in the Central District of California, the company estimated that its debts and liabilities range from at least $100 million to as much as $500 million.
It also said it has between 1,000 and 5,000 creditors.
American Suzuki Motor said it has enough cash to operate during the restructuring and intends to honor all car warranties and buyback agreements. It will work with its car dealerships to help them transition into parts-and-service operations. In some cases, the dealerships will be shuttered, it said.
Once it exits bankruptcy protection, American Suzuki Motor said it will focus on selling Suzuki motorcycles, all-terrain vehicles and marine outboard engines.
It said that it is exiting the car business because of slow sales, unfavorable foreign exchange rates and high costs due to U.S. regulatory requirements.
It sold 2,023 vehicles in October, which was up 5 percent from the same month last year. Its Grand Vitara sport utility vehicle posted a 64 percent jump in sales last month, although American Suzuki did not say how many of them were sold. In May, the last month it provided a breakdown of its sales, it moved 474 Grand Vitaras, while its biggest seller was its SX4 small crossover, of which 1,101 were sold.
The bankruptcy and reorganization are unrelated to its parent Japan-based Suzuki Motor Corp., which intends to buy the American subsidiary's remaining businesses and automotive service operation.
The reorganized company will retain the American Suzuki Motor name, the company said.
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But with predators causing the downward spiral of prices and wages, it's hardly surprising more and more companies, small and even large (SUZUKI is hardly a fledgling trapped by larger giants), are now in trouble.
A once-stable paradigm was shifted, and the events of the last few decades should be obvious. Hindsight being 20/20 and all, but the other phrase is to not instantly pin the cause of issues as malice when plenty of other possibilities exist. I've to remember that, too.
Oh, Slick move. Dump the debt and keep the assets.
Way to go!!!
No one says anything about corporations going bankrupt yet when they do go bankrupt they effect 1000-5000 creditors, not like individuals which typically effect 10-20 creditors.
People should get the same rights. Especially students - you know, people that - unlike gamblers - actually try to learn and contribute to our society. Why the hell are students left to drown while we let gamblers off time and again? In a civilized society, it'd be the other way around.
Seriously.
Never mind college costs skyrocketing while instructor salaries haven't. And you can't expect people with zero experience and zero degrees to get anything close to a proper job these days. Even existing employees are not given chances because the company wants experience - after reading the same thing every other company has. Our current paradigm is ultimately choking itself, while blaming the people trying to do things in good faith, while letting the gamblers go scot free.
it's a way of getting out of contracts and debt and screwing over the American People and businesses all while walking away with the assets.
Not disagreed...