American Suzuki Files For Chapter 11 Bankruptcy Citing Stringent Government Regulations

Suzuki-logo1

In an unexpected filing, American Suzuki is declaring bankruptcy and blaming stringent government regulations, among other factors:

The present economic situation has struck down its first victim in the automotive industry. American Suzuki Motor Corporation, the U.S division of Suzuki Motor Corporation, today announced that it has filed for bankruptcy under chapter 11 with the United States Bankruptcy Court, Central District of California in Santa Ana. American Suzuki will no longer manufacture or sell cars or trucks in continental U.S. American Suzuki cites “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” (sic) for its current predicament.

Apparently the company plans to re-organize and focus on the ATV/watercraft markets.

The company was pretty marginal in competition with other US and Asian car companies, but that’s what big government regulations do. They make markets smaller by making business harder.

Less government means more business and more selection for US consumers.

Rob Port is the editor of SayAnythingBlog.com. In 2011 he was a finalist for the Watch Dog of the Year from the Sam Adams Alliance and winner of the Americans For Prosperity Award for Online Excellence. In 2013 the Washington Post named SAB one of the nation's top state-based political blogs, and named Rob one of the state's best political reporters. He writes a weekly column for several North Dakota newspapers, and also serves as a policy fellow for the North Dakota Policy Council.

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  • borborygmi

    Shocker Rob picks out the least among the reasons. ” Suzuki cites “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.” Low Sales Rob, Limited models. Pure BS from you Rob. I just bought a new car and never thought of Suzuki. They were a non factor in the US. market

    • http://sayanythingblog.com Rob

      So it’s the least among the reasons…because you say so?

      Setting that aside, shouldn’t we be concerned that it is a reason?

      • Tim Heise

        And the answer is . . . YES!

      • borborygmi

        Here I did your research for you. Just Google Suzuki.

        Suzuki sold just 21,188 cars and crossovers over the first 10 months of this year. Toyota sells about that many Corollas every month.

        “Suzuki has been on a downward slope for the last several years,” said Aaron Bragman, automotive analyst for IHS Automotive. “They were hitting about 100,000 units annually in 2006 and 2007 but the products they have introduced lately really didn’t resonate with anybody.”

        The Japanese automaker, which imports all of its vehicles, also was hurt by unfavorable currency exchange rates between the dollar and the yen”
        Once again in your hate for all things gov’t you ignore the real story. Lemming . Same with Heise below

  • Dustin Gawrylow

    It probably has a lot to do with the fact that GM was their biggest American partner for 20 years (remember, the Geo Metro was actually a Suzuki Swift). GM bought Daewoo when it went belly up, and replaced the Geo line with Daewoo based cars. Then the final nail in the coffin to be sure is that GM has cut off partnerships with non-subsidiary Japanese companies since becoming Government Motors.

    http://jalopnik.com/5958087/suzuki-a-way-of-life-through-death?tag=suzuki

    • http://sayanythingblog.com Rob

      That’s probably the “disproportionally high and increasing costs associated with stringent state and federal regulatory requirements unique to the U.S. market” they were talking about.

      • borborgmi

        Or perhaps they just sell enough flipping cars.

        • borborygmi

          whoops , make that didn’t sell enough cars

      • borborygmi

        At least you admit you had NO idea what gov’t regulations were inhibiting Suzukis success. Now you are just guessing.

      • AV

        Doesn’t Suzuki make those funny little cars that basically no-one (outside of Japan) buys?

        So the fact that the weren’t selling enough of them to justify US-centric versions is just the reality of doing business. It’s not the govt’s job to allow cars to be less-safe and have higher-emissions, to prop-up a failed business model.

        Yet you call us nanny-statists.

    • borborygmi

      Perhaps that was one of the reasons that GM was in the hurt bag. They invested in cars that “didn’t resonate with anyone”

  • Harold

    If Obama wins again there will be a lot more companies in same shape as Suzuki and be leaving this country to go to other countries with a more favorable company environment. This is just the first of many which will leave.

    • borborygmi

      I would think you would get that from Romney. He will give some nice big tax breaks to his cronies to buy dismantle and sell the pcs overseas. Silly me I forgot after Romney gets elected gas will go down to $2 a gallon, unemployment will be at 3%, the world including the Muslims will love us and there will be no more terroristic threats or attacks on US entities. The middle class will be making so much money they will be the upperclass and lowerclass will become middle class eliminating all poverty except for those that want it and everyone one can take a warm shower as the wealth from above will trickle down to those below.

      • borborygmi

        Oh I forgot Suzuki will figure out how to design and market automobiles that people want and they become the next Ford.

      • $16179444

        one thing is for sure – WHEN Romney is elected we won’t be going in the wroing direction like your ‘president’ has been taking us. now sit back and let the adults run the show. the experiment that was Obama is over. time for responsibility and morality to make a come back — oh and btw, its time for you to get a job and actually contribute. no more handouts kid.

        • borborygmi

          Love to have Mitt in death knell for conservatives. But you are blind if the pie in the sky he is promising comes to fruition. BTW taxpaying employed citzen for 40+ years. Sorry to disappoint

      • obamapoop

        Your post above is a great example of what is so dangerous about Democracy. Mitt buys companies with heavy leverage then decides if they can be saved or if it makes sense to sell off. While he might move some things offshore like Apple and just about everyone else, the company is generally made healthier rather than go belly up. Obama however exports your money directly overseas and helps big business push out small business….sometimes overseas or South. Thanks for helping make us all poorer with your lack of intelligent voting.

  • mickey_moussaoui

    Must not be a union shop otherwise Opathologicalliar would of bailed them out.

    • borborygmi

      only importers not manufacturers. So if a union shop it was the mechanics and there aren’t so many of them.

      • obamapoop

        They were manufacturing hear too….were.

        • borborygmi

          where?

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