American Suzuki Motor Corp, the sole distributor of Suzuki Motor vehicles in the US, has filed for bankruptcy protection, saying that it will stop selling automobiles in the US.
The bankruptcy and reorganization of American Suzuki Motor Corp are unrelated to Suzuki Motor, which intends to buy the American subsidiary's remaining businesses and automotive service operation.
Once it comes out of bankruptcy protection, American Suzuki Motor said it will focus on selling Suzuki motorcycles, all-terrain vehicles and marine outboard engines.
American Suzuki Motor Corp cited slow sales, unfavorable foreign exchange rates and high costs for meeting US regulatory requirements for its decision.
It sold 2,023 vehicles in the US in October. American Suzuki Motor said it will honour all car warranties and buyback agreements. (With Agency Inputs)