Suzuki's U.S. distributor, American Suzuki Motor Corp., filed for Chapter 11 bankruptcy early this week. The manufacturer also announced that it will be ceasing automobile distribution in the U.S. while still maintaining its presence in the world of motorcycles, ATVs and marine products.
The company, based in Brea, California, was the sole distributor of Suzuki vehicles in the continental U.S. Declining sales and a limited line up have sent the manufacturer into massive debt, with estimates ranging from $100 million to $500 million, The Detroit Free Press reports. However, the company claims to have enough funds to shift its operations and stay open during the restructuring.
Despite halting sales, Suzuki will continue to provide support and vehicle maintenance for owners of the brand. The company will also honor all warranties and buyback agreements, though its dealerships will either be closed or converted to service facilities.
It will also extend its reach in the motorsports industry, offering a variety of machines, accessories and gear. According to Suzuki's official statement, the corporation believes that it will be able to remain competitive in the motorcycle market, so long as economic conditions continue to improve.