Suzuki America files chapter 11

[53x12]

American Suzuki Motor Corp. said Monday that it will file for bankruptcy protection and will stop selling cars in the U.S.

The Brea-based company plans to restructure so that it can continue to sell Suzuki motorcycles, all-terrain vehicles and marine outboard engines.

“The realignment is intended to better position ASMC for long-term success and is a return to the company’s roots in the U.S. market, which began with motorcycles,” the company said in a statement.

The Chapter 11 restructuring petition will be filed in U.S. Bankruptcy Court in Santa Ana.

Suzuki started selling cars in the U.S. back in 1985. It is best known for the Samurai sport-utility and the Swift compact car.

But the company has been almost an afterthought in U.S. auto sales in recent years. Through the first 10 months of this year, the company has sold roughly 21,000 vehicles in the U.S., about 1,000 less than last year.

Its best-selling vehicle this year is the SX4, a small crossover.

Suzuki said that its “automotive division was facing a number of serious challenges,” including the low sales volume, a dearth of models, the unfavorable exchange rate between the U.S. dollar and the Japanese yen, the cost of the maintaining a dealership network and the regulatory environment for the automotive industry in the U.S.

Analysts said the company had trouble competing in the U.S.

“I don't think it's a big surprise given their lackluster sales performance of recent years. They have have low margin, low-priced cars with small volume. That's far from the ideal combination,” said Jessica Caldwell, an analyst with auto information company Edmunds.com.

“Over the long term it's hard to sustain a brand on such little volume when you don't have a healthy margin like exotic or specialty brands,” Caldwell said.

Suzuki said it will continue to honor warranties and will provide automobile parts and service through its parts and service dealer network.

http://www.latimes.com/business/auto...0,488732.story

* Registered users of the site do not see these ads.

[Snow Drift]

Well it is always sad to see an automotive company fall but this was not unexpected.

Outside of the Kizashi they didn't make anything compelling. The Swift would have been better than the SX4 but that didnt happen. And I can't remember the last time I saw a Suzuki dealership.

Mitsubishi is next...

[mhoward1]

If they had brought a proper Swift GTi back, this wouldnt have happened!!

[keepclam]

I would imagine a fair amount of Suzuki buyers will end up in Subaru showrooms.

[A W]

Most inexpensive new AWD vehicle title just got switched out from Suzuki.

[keepclam]

Originally Posted by A W

Most inexpensive new AWD vehicle title just got switched out from Suzuki.

Know of one cheaper than Impreza ($17,895 base MSRP) now? I can't think of any...

[subyski]

It is a shame to lose another brand but it just shows how competitive the car market is in America and Suzuki couldn't do enough.

While the SX4 Crossover was good, it didn't evolve into the proper CUV it should have been for America. It did offer some unique styling and AWD but wasn't compelling enough to compete with the market Subaru and others offered.

The SX4 SportBack and sedan didn't offer really anything different and should have been replaced with the Swift, a name familiar with Americans.

The Kizashi brought some hope of things to come with a good looking car with AWD but nothing else evolved from there.

[A W]

Originally Posted by keepclam

Know of one cheaper than Impreza ($17,895 base MSRP) now? I can't think of any...

The SX4 Crossover was the most inexpensive AWD vehicle in the USDM is what Suzuki claimed it to be. They no longer hold that crown is what I was saying since they're no longer going to be here anymore.

As far as prices of AWD vehicles go, unless Fiat tries to go AWD, I don't think any one else is on Subaru's pricing level. American brands seem to tack on more to the MSRP for AWD, Japanese brands and Korean are no different. Subaru is the only one with standard AWD so it goes without saying their MSRP is about to look really good to a lot of people now (at least the ones who even considered Suzuki). I don't see many SX4's in Colorado. I see more Mitsubushi's than Suzuki's here.

[keepclam]

Originally Posted by A W

The SX4 Crossover was the most inexpensive AWD vehicle in the USDM is what Suzuki claimed it to be. They no longer hold that crown is what I was saying since they're no longer going to be here anymore.

I know, I understood what you were saying.

[heavyD]

Originally Posted by Snow Drift

Mitsubishi is next...

No way. Mitsubishi sales are actually up 61% over last year (fastest-growing mass-market automaker in the U.S.) as they are going back to what they are good at in smaller cars and SUV's rather than try to tackle the Accord and Camry market which has been impenetrable. The Outlander Sport for example has been a huge success. I wouldn't be surprised to see Mitsubishi Motors trend up in the next decade.

[JC]

Suzuki has had some decent products but never really did enough.

Originally Posted by heavyD

No way. Mitsubishi sales are actually up 61% over last year (fastest-growing mass-market automaker in the U.S.) as they are going back to what they are good at in smaller cars and SUV's rather than try to tackle the Accord and Camry market which has been impenetrable. The Outlander Sport for example has been a huge success. I wouldn't be surprised to see Mitsubishi Motors trend up in the next decade.

Where do you see they are up over 61%? Their sales are tanking.

http://www.autoblog.com/2012/11/01/o...storm-edition/

[subyski]

Originally Posted by heavyD

No way. Mitsubishi sales are actually up 61% over last year (fastest-growing mass-market automaker in the U.S.) as they are going back to what they are good at in smaller cars and SUV's rather than try to tackle the Accord and Camry market which has been impenetrable. The Outlander Sport for example has been a huge success. I wouldn't be surprised to see Mitsubishi Motors trend up in the next decade.

According to Mitsubishi's Financial report released on Oct, 30th, North American sales are down 29% over the same period last year (first half of 2012 fiscal year). Japan sales are down 12% and Europe 23%. Global sales are down 8%. Mitsubishi will also end production in Europe this year. On the bright side, Asian and other regions have seen a 5% increase in sales. Mitsubishi is having success with the Outlander Sport, new Outlander (other markets), and Mirage (other markets). But in the U.S., the Lancer is slowly aging, i-MiEV sales are slow, and the Galant and Eclipse are dead, so their portfolio is pretty thin right now.

http://www.mitsubishi-motors.com/pub...etail0860.html

[lymphomaniac]

FWIW, Lemon Aid had already been ringing Mitsubishi's death knell the last year or two, at least for the Canadian market.

[keepclam]

Originally Posted by heavyD

No way. Mitsubishi sales are actually up 61% over last year (fastest-growing mass-market automaker in the U.S.) as they are going back to what they are good at in smaller cars and SUV's rather than try to tackle the Accord and Camry market which has been impenetrable. The Outlander Sport for example has been a huge success. I wouldn't be surprised to see Mitsubishi Motors trend up in the next decade.

Originally Posted by JC

Suzuki has had some decent products but never really did enough.



Where do you see they are up over 61%? Their sales are tanking.

http://www.autoblog.com/2012/11/01/o...storm-edition/

Originally Posted by subyski

According to Mitsubishi's Financial report released on Oct, 30th, North American sales are down 29% over the same period last year (first half of 2012 fiscal year). Japan sales are down 12% and Europe 23%. Global sales are down 8%. Mitsubishi will also end production in Europe this year. On the bright side, Asian and other regions have seen a 5% increase in sales. Mitsubishi is having success with the Outlander Sport, new Outlander, and Mirage.

http://www.mitsubishi-motors.com/pub...etail0860.html

Note the bold info below.

Mitsubishi Motors Reports Outlander Sport Sales Increase Continues
CYPRESS, Calif., Nov. 1, 2012 /PRNewswire/ -- Mitsubishi Motors North America (MMNA) today reported October sales of the Outlander Sport were up 17.9 percent compared to the same month in 2011.
Outlander Sport sales were 1,675 for the month, the second highest monthly total ever for the fuel efficient CUV, manufactured in Normal, Illinois. The monthly total was only exceeded by that of September 2012. For the January to September year-to-date, Outlander Sport sales are up 7.4 percent.
"We are pleased at the consistent growth of the Outlander Sport, our top seller in the U.S," said MMNA President & CEO Yoichi Yokozawa. "This demonstrates that customers looking for a fuel-efficient CUV certainly have the Outlander Sport on their shopping list." For the current 2013 model year, Outlander Sport received numerous new improvements including enhanced exterior styling and interior design features.
Overall Mitsubishi sales were 3,981 units, down 9.1 percent compared to October 2011. That total however is impacted by models that ended their production in 2011. Total sales of models currently in production were up 7.0 percent for the month compared to October 2011.
Mitsubishi Motors North America, Inc., (MMNA) is responsible for all manufacturing, sales and marketing operations for Mitsubishi Motors in the United States. MMNA sells cars and light trucks through a network of approximately 400 dealers. For more information, contact the Mitsubishi Motors News Bureau at (888) 560-6672 or visit media.mitsubishicars.com.
SOURCE Mitsubishi Motors North America

I guess Outlander Sport's doing OK, but I wouldn't exactly call it a huge success. It's Mitsu's top US seller, and XV Crosstrek is already outselling it.

October sales:
Crosstrek 1735
Outlander Sport 1675

I think new CX-5 & Forester will further stymie any Mitsubishi marketshare growth.

[mpristave]

I liked the Kizashi and there were rumor a while back of a turbo awd version. Never happened though.

Suzuki really made no effort to gain sales so this come as to no surprise.

Originally Posted by mhoward1

If they had brought a proper Swift GTi back, this wouldnt have happened!!

You think some niche car, that would be impossible to make with today's safety standards... at best it would be a honda civic si, would have caused them to not be backrupt?

Why are people nostalgic for a 100hp hatchback with a motorcycle engine?

[mhoward1]

Originally Posted by mpristave

I liked the Kizashi and there were rumor a while back of a turbo awd version. Never happened though.

Suzuki really made no effort to gain sales so this come as to no surprise.


You think some niche car, that would be impossible to make with today's safety standards... at best it would be a honda civic si, would have caused them to not be backrupt?

Why are people nostalgic for a 100hp hatchback with a motorcycle engine?

Check the batteries in your meter.

[SCRAPPYDO]

What no bailout for Suzuki?

Ba Da da.... ting...

[aeoporta]

:_( AWD world just got a bit smaller
RIP

[Derbagger]

The SX4 was a decent little car when it came out, but the field moved on VERY quickly and Suzuki couldn't keep up. And I think comparing Kizashi to A4 just confused people and the few A4 buyers would have been turned off just looking at the dealership in a drive by.

[heavyD]

Originally Posted by JC

Suzuki has had some decent products but never really did enough.



Where do you see they are up over 61%? Their sales are tanking.

http://www.autoblog.com/2012/11/01/o...storm-edition/

Oops looks like I was looking at 2011 sales;

Mitsubishi sales continue to increase as the first 6 months of 2011, sales were up 66.5 percent, making Mitsubishi the fastest growing automaker in the United States. Sales then finished in 2011 with a 41.9 percent increase from 2010. This marks Mitsubishi's highest full-year sales total since 2008.

However doesn't change the fact that they are getting their act together and sales have been up.

Not sure why but people have been calling Mitsubishi to pull out of the US for over a decade and it never comes to fruition. Mitsubishi Corporation is so large and makes so much money it almost seems like they don't care if Mitsubishi Motors North America makes money or not but they keep it going and have never, ever entertained pulling out. Not sure why people would expect them to all of a sudden pull out now when they are trending up from the last decade.

[justincredible]

I wonder how cheap I will be able to pick up an Equator for?

[subyski]

Originally Posted by heavyD

Not sure why but people have been calling Mitsubishi to pull out of the US for over a decade and it never comes to fruition. Mitsubishi Corporation is so large and makes so much money it almost seems like they don't care if Mitsubishi Motors North America makes money or not but they keep it going and have never, ever entertained pulling out. Not sure why people would expect them to all of a sudden pull out now when they are trending up from the last decade.

It's not only Mitsubishi NA that is not making money, it's Mitsubishi Motors global is not making money. I wouldn't say that Mitsubishi Corp doesn't care that they lose money, any company would care if one of their divisions are struggling, especially when they have shareholders. They are probably committed to try to turn around the brand especially when they changed their business model towards efficiency, hybrids, and electric vehicles. While they have some upward trends, they have lost a lot of market share and made a lot of sacrifices lately, but hopefully these changes do result in success for Mitsubishi, especially in the NA market. It's not easy for a foreign make to make a decision to close up shop and leave the U.S. market. Look at how many left and never returned. Fiat was able to get back in only because of Chrysler's woes but they still have their own struggles.

[warpath]

I have a feeling they sell cars thru GM again.

[Hondaslayer]

Originally Posted by Snow Drift

Well it is always sad to see an automotive company fall but this was not unexpected.

Outside of the Kizashi they didn't make anything compelling. The Swift would have been better than the SX4 but that didnt happen. And I can't remember the last time I saw a Suzuki dealership.

Mitsubishi is next...

I hope not, that would leave us as a KIA only dealer then.

Came into work this morning and got the news of Suzukis filing. Told my counter men no returns on anything Suzuki, special order or not. I know I'm going to catch flack for this

[chanomatik]

My best buddy had a Kizashi AWD and that thing was niiiiice. It was a weird stage above the Impreza sedan, but below the Legacy, and still beyond them with things like seat position memory and such. It was a heavy sucker, though, and didn't even have 200HP to help compensate or live up to its sporty nature. It'll be sad to see it go.