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.