ZUKIWORLD Online | Suzuki 4x4 Editorial and Forum
ZUKIWORLD Discussion Forum => Suzuki 4x4 Forum => Topic started by: ebewley on November 05, 2012, 04:47:55 PM
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American Suzuki Motor Corporation ("ASMC") Announces Restructuring and Realignment to Focus on Motorcycles/ATV and Marine Divisions
ASMC to wind down and discontinue new automobile sales in continental U.S.
BREA, Calif., Nov 05, 2012 (BUSINESS WIRE) -- --Consumers will be protected and all warranties will continue to be fully honored
American Suzuki Motor Corporation ("ASMC" or "the Company"), the sole distributor in the continental United States of Suzuki Motor Corporation ("SMC") automobiles, motorcycles, all-terrain vehicles and marine outboard engines, today announced that it plans to realign its business to focus on the long-term growth of its Motorcycles/ATV and Marine divisions. 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 Company has determined the best path to achieve this realignment in an efficient and orderly manner is to restructure its operations under chapter 11. The case will be filed in the United States Bankruptcy Court, Central District of California in Santa Ana.
Consistent with ASMC's long history of standing by its products, owners of Suzuki automobiles will be protected. All 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.
ASMC remains firmly committed to Motorcycles/ATV and Marine products, and these divisions are competitively positioned in their respective markets, allowing for long-term growth as economic conditions improve. 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 and has grown to include ATV and marine products. ASMC remains very proud of its high quality, high performance motorcycle, ATV and Marine products. The Company will continue to bring ASMC products to market, including its full lineup of sportbike, cruiser, touring, scooter, dualsport, motocross, off-road motorcycles and KingQuad ATV line, as well as its flagship DF300AP, state-of-the-art DF20A, and DF15A, among other models. Additionally, ASMC is working to further build its market share through continued investment in additional support for dealers through marketing and advertising activities and sales promotion. Suzuki will continue to have a strong presence as a sponsor of teams in supercross, outdoor motocross and road racing.
In evaluating its position in the highly regulated and competitive U.S. automotive industry, ASMC determined that its Automotive division was facing a number of serious challenges. These challenges include low sales volumes, a limited number of models in its line-up, 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. While the decision to discontinue new automobile sales in the U.S. was difficult to make, today's actions were inevitable under these circumstances. ASMC is dedicated to honoring its commitments to Automotive customers through and after the wind down of new automobile sales in the continental U.S.
An Orderly Process to Serve Consumers
ASMC intends to work within its current U.S. Automotive dealer network to help structure a smooth transition from new automobile sales to exclusively parts and service operations, or, in some instances, an orderly wind down of dealership operations. ASMC intends to market and sell its remaining U.S. automobile inventory through its Automotive dealer network. Through and after the restructuring, all warranties will be fully honored and automobile parts and services will be provided to consumers through the dealer network. ASMC intends to honor any automobile buyback agreements that are currently in place with financial institutions.
As part of its chapter 11 filings, ASMC will submit a proposed Plan of Reorganization and Disclosure Statement that specifies how the Motorcycle, ATV and Marine divisions will be maintained and enhanced, and how its relationship with Automotive dealers will be largely transitioned to support consumers and dealers through continued parts and service operations. SMC or its nominee intends to purchase ASMC's Motorcycle, ATV and Marine businesses, as well as the Automotive service operation responsible for parts and warranties, through a new U.S. subsidiary that will retain the ASMC brand name.
ASMC believes it has sufficient cash on hand to operate its businesses during the restructuring. If necessary, ASMC will request permission from the Court to borrow additional funds from SMC needed during the restructuring.
Honoring Commitments
ASMC intends to operate its Motorcycles/ATV and Marine businesses as usual and is dedicated to completing the realignment process as smoothly and efficiently as possible. ASMC will continue to fully stand behind all of its products and honor all warranties from these divisions. ASMC is working with GE Capital's Retail Finance and Commercial Distribution Finance businesses to continue providing motorcycles and ATV consumer financing programs and motorcycle, ATV and marine dealer inventory financing respectively. The Company expects existing agreements with other dealer and consumer financing providers to continue as well.
ASMC has filed a series of first day motions requesting approval to continue paying employee wages and benefits in the ordinary course, offering dealer incentives and payments under customer warranties. ASMC also expects to pay vendors in the normal course of business for goods and services delivered on or after its November 5, 2012 filing. Payments for goods received before ASMC's November 5, 2012 filing will be made in accordance with the chapter 11 procedure.
SMC, the 100 percent interest holder in ASMC, is not a debtor in the chapter 11 filing.
ASMC's legal advisor on the restructuring is Pachulski Stang Ziehl & Jones LLP, and its financial advisor is FTI Consulting, Inc. Nelson Mullins Riley & Scarborough LLP is serving as special counsel on automobile dealer and industry issues. Further, ASMC has proposed the appointment of M. Freddie Reiss, Senior Managing Director at FTI Consulting, as Chief Restructuring Officer, and has also added two independent Board members to assist it through this period.
Additional information regarding ASMC's business realignment can be found at the Company's website, www.suzuki.com (http://www.suzuki.com) , or via an information hotline at 1-877-465-4819.
SOURCE: American Suzuki Motor Corporation
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I've been reading about this possibility for quite some time. I wonder if this means that a new Grand Vitara will be deeply discounted!
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I've been reading about this possibility for quite some time. I wonder if this means that a new Grand Vitara will be deeply discounted!
I'm sure it would be if you can find one.
-Eric
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A shame, but it's been a long time coming.
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Sad but not surprising. That must be why I didn't get a response from the dealer today. Wanting to trade the GV on an Equator. Not sure that will happen.
Rob
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Now I have 2 no longer made Suzukis.... my Samurai and my SX4!!!!
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My Samurais will go on lol. ;)
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On the bright side we can all go to those orphan car shows now. :laugh:
-Eric
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I bet I just lost 25% value in my 2011 GV. That sucks. I'm 1 year into ownership and I bet its worth half what I paid for it if I can even find a buyer for it.
Rob
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Keep on driving it!
My dad bought our first Samurai a couple of months before the Consumer Reports rollover story came out. The resale value was instantly cut in half. However, I still have that Samurai nearly 25 years later. Never rolled it either. :laugh:
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I h ;)ope the factory warranty on my 87 Sammi doesn't expire.
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Oh Rats! What a shame, So many crappy car companies out there and it is Suzuki that can't make it here, Oh the injustice.
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Yeah, it's too bad. We traded in our '10 SX4 for a Subaru Forester seven months ago because I was afraid this might happen. Was mostly worried about warranty work.
Still have my Kick, and have no plans of getting rid of it. I guess that means we're definitely not getting the Jimny in the States. >:(
- Andy
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Not unless VW and Suzuki kiss and make up. Something tells me that won't happen any time soon.
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Honestly, I was never that excited over the prospect of getting the Jimny in the US. When I lived in Germany they had the Jimmys there, and I prefered the 2nd Gen Samurai over it by a large margin. IMHO, the Jimmy is like more like a 1st gen Sidekick with a straight front axle than the 2nd gen Samurai.
Nothing against Sidekicks, but they aren't the primitive, "take of the doors, fold down the windshield" Samurai.
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I never even thought about how much money I just lost. I was more worried about getting my warranty service. The place I deal with isn't all that great, but i don't have the knowledge to keep the SX4 running like I can with the Samurai.
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Or, you can head up here north of the border for a new zuki. At least for now..
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Sorry to see this all happen,
And sorry that my 1st thought was.....what's going to happen to this site web site?!!
My feeling was it was heavily sponsored by the Suzuki Motor Company, and the employees that worked there.
Hope we can keep it going !!
AND being a Sammy Owner, I never worried about it's value, maybe my kids will when I die, but I was going to
own it forever !!
And now, salvage parts have just gained in value, even thought they stopped making the Sammy years ago.
Glad I bought that Complete 1988 donor a few months ago.
CAPT
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Without Suzuki importing or building capable 4x4's in the states, I really do not see any good reasons for them to stay.
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Capt asked it, I'll ask again: what does this mean for the Zukiworld site? I hate to think it goes too. I know you'll have to give up your long term demo though.
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Hopefully the site can go on, being funded by vendors. I've noticed that Suzuki has already pulled their 2013 ads on the site. :(
Shame on that Suzuki Truck too-it was great to see a new "Suzuki" on the trails. :(
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I hate to say it but I think Suzuki's downfall was that they started making there cars and "trucks" just like every other Korean or Asian company out there trying to compete in the mainstream. The Vitara basically turned into a "tall wagon" (read: wussy car) and you couldn't tell the difference between a Kashizika or whatever it's called and any other Kia, Hyundai, etc. etc. Too bad the old days of Suzuki are long gone. I will keep my Sidekick forever probably. I did notice that I couldn't get parts for the air conditioner last time I worked on it. That's going to suck when certain things become totally unavailable. I was lucky and found a condenser to compressor suction tube at a wrecking yard. Oh well, I'm used to it... I have an International Harvester also. I kind of like orphans for some reason.
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I agree with goodyz, what made Suzuki different and appealing was it was a TRUCK, maybe not the most luxurious, but tough and dependable with a eco friendly small footprint that's cheap to own and drive. Trying to build what the majority of Americans want is competing with already well established car makers. If we wanted car-like ride and comfort we all would have bought something else. I'll probably keep my Tracker for a long time to come, not because it's a Suzuki, because there's nothing else like it available here made by any company. They should have stuck to what they were really good at. At least their motorcycles are world class and will probably always be so. Still no word from the forum owners about the future of the site? I'd really miss this if it were to go too. I'd still keep my Tracker though ;D
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Capt asked it, I'll ask again: what does this mean for the Zukiworld site? I hate to think it goes too. I know you'll have to give up your long term demo though.
Thanks for the question. As for the Zukiworld site we will continue on and have plans to expand our online offerings including updates to make the site and it's data more accessable to mobile applications. We are planning our 2013 Adventure and Racing Schedule right now... Even though there will not be new Suzuki models being offered in the US, we are excited about early and mid-model Suzuki vehicles and see their popularity only growing.
As for the ARB Suzuki Equator, we have secured that and will continue to explore, modify, and enjoy it for years to come.
Thank you, Eric
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Nice job securing ARB Suzuki Equator It is one of kind. congrats!
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Nice job securing ARB Suzuki Equator It is one of kind. congrats!
X2
Looking forward to the 2013 Adventure schedule too.
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Now what we need is for some to buy all the stamps for the samurai, and make it to look like the new 2013 land rover defender SVX. but at a decent price.... yea just dreaming.
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Nah, I like how it looks-spartan and blingless. If I were to change anything (update it), it would be to add a few inches in width, extend the wheelbase to around 90 inches, and put coils all around. Also swap in a modern 2.0+ liter four cylinder with 140hp. 8)
A poor man's Defender 90.
(http://trialx.com/curetalk/wp-content/blogs.dir/7/files/2011/06/cars/1995_Land_Rover_Defender_90-1.jpg)
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Now what we need is for some to buy all the stamps for the samurai, and make it to look like the new 2013 land rover defender SVX. but at a decent price.... yea just dreaming.
Actually, I know where there are some stamps for sale. The guys that sell the amphibious SJ's supposedly have some. :D
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you do know that Suzuki means fish in Japanese. they like rigs that can swim.
http://www.wimp.com/throughflood/ (http://www.wimp.com/throughflood/)
https://en.wikipedia.org/wiki/Isuzu_Motors (https://en.wikipedia.org/wiki/Isuzu_Motors)
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Bittersweet....
http://www.inautonews.com/suzuki-jimny-facelift-unveiled (http://www.inautonews.com/suzuki-jimny-facelift-unveiled)
No reason why they couldn't have brought this over 10 years ago. Should have stretched the wheelbase 6", installed a 3rd door like the FJ Cruiser (functional and to get around the import tariff), and put in a 1.6 liter engine.