Filed under: Suzuki, Earnings/Financials
Yesterday's announcement that
American Suzuki has filed for bankruptcy is all but a death blow for the Japanese automaker's
246 US dealers, but if there's any good news coming out of the situation, it could be the fact that the whole process will likely be quick and painless rather than drawn out.
WardsAuto is reporting that with the current inventory and average sales numbers so far this year, there figures to be about three months left for Suzuki's new-car business in the US given current sales rates.
In October,
Suzuki sold 2,023 units - a five percent increase over last year - but with just 5,549 left in inventory, it shouldn't take too long to wind down operations. Sales for the brand peaked 2007 with more than 100,000 units sold, but this year, Suzuki is barely on pace to reach a quarter of that amount, with just 21,188 units sold so far in 2012. In addition to poor sales,
WardsAuto also notes that Suzuki faced problems due to its reliance on customers with subprime credit.
Suzuki will continue to sell motorcycles, ATVs and marine engines in the US, while the brand's cars will still be on sale in other countries including Canada and Mexico.
Suzuki could disappear from new car market quickly thanks to low inventory originally appeared on Autoblog on Tue, 06 Nov 2012 16:30:00 EST. Please see our terms for use of feeds.
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