American Suzuki Motors, beset by low sales, cut-throat competition and unfavourable foreign exchange rates, says it will pull out of the US car market and file for bankruptcy protection.
The company this week said it would continue its motorcycle and marine engine business units and would continue to honour customer warranties.
Japanese parent company Suzuki Motor Corp is not filing for bankruptcy.
American Suzuki cited its poor US car sales, high costs, regulatory requirements and unfavourable foreign exchange rates as factors that contributed to the decision to wind down its automotive business
Wonder if other Japanese importers are feeling the exchange rate pinch?
246 US dealers have sold 21,000 cars YTD.
Could happen in the UK?
The Swift seems to sell well (too teeny for the US no doubt) but the Jimny & Vitara are ancient and who's ever going to buy a Kizashi..?
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Swift is built in Hungary so dodges the poisonous Yen. Well priced and reliable and the Sport is a good little buggy (I'd ditch the standard keyless entry and Xenon lamps to slice another £500 of retail, but I'm no marketing guru).
Vitara has lost its tail-mounted spare in favour of a tub of vaselube - doubt that'll help sales amongst the rural mob, and it's not up there with the fashionista 4x4s these days.
Jimny is waaay over-priced at the thick end of 12 grand (it was closer to 8 grand after discount before the Yen crept up over the past 4 years) for a very effective 4x4 but is too small for heavy duty towing or realistically taking more than 2 people and some luggage).
Kizashi is a halo model they don't need, and won't do anything for the brand in the UK. They should look at Swift Sport for the halo-effect while actually being able to shift some metal.
How Suzuki fares in the rest of Europe I've no idea.
Last edited by: Lygonos on Mon 12 Nov 12 at 23:29
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The Swift is built in Hungary and India - both "low cost" countries - which must help. The car is a firm favourite in Oz & NZ. Mind you, one of its principal competitors was the Hyundai Getz until last year...!
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I fear for both Suzuki and Subaru in the UK - they just haven't got the volume. I think they'll go the same way as Daihatsu before too long.
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Suzuki US line up is different from UK
SX4, Kisashi, Grand Vitara & Equator pickup
GV starts at $21,000 so is considerably cheaper than approx £21K in UK
Thinner margins, if we assume Jap manufacture the High Yen..............unless they raised prices they would lose $$$
If they raised prices they would not sell many.
Rock and hard place.
Rising Yen and falling demand means momentous problems for all Japanese product manufacturers who build in Japan for Euro & US markets - and not just cars - any product!! .
Most Japanese car cos have manufacturing in US/Europe, South America so these cars are better placed...Honda, Toyota, Subaru, Nissan etc have US & Euro factories.
My 1995 Honda was US manufacture and was 100% reliable in 6yrs & 110K miles when sold in 2001 - so US manufacture can mean quality IMHO
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Suzuki are embroiled in a bitter "divorce" from VW at the moment. VW bought 20% of Suzuki and they had big plans for a tie up / sharing tech etc..
Mr Suzuki then became disillusioned with the partnership when VW insisted that Suzuki drop the Fiat diesel they use and use theirs instead...This along with other "interferences" and a total lack of benefit coming the other way from VW led them to dissolve the partnership.
Suzuki now want to buy the 20% stake back but VW are saying they wont sell it...all very messy!
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They announced the closure of their Spanish motor cycle factory last week. They will continue to distribute large cylinder bikes made in SE Asia
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For Europe, the Splash, Swift and SX4 are built in Hungary, and the Alto is built in India.
As regards the diesel engines, they presumably use Fiat engines due to their Suzuki SX4/Fiat Sedici joint venture with Fiat. Can't imagine Fiat would be happy with VW engines.
The Spanish motorcycle plant has lost 30 million Euros over the last four years or so, and has a declining market. It has been suggested that Suzuki will use their Thailand motorcycle production facilities to supply Europe.
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>>Splash, Swift and SX4 are built in Hungary, and the Alto is built in India.
I imagine they are the biggest UK sellers by volume.
Hhowever the original post was re Suzuki in US where Splash, Swift, and the Alto are not sold in US market
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The SX4/sedici contract is about to end, and Fiat will now use their Jeep know how for the next similarly sized 4x4, probably based on the 500L and be called the 500X...
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>> However the original post was re Suzuki in US where Splash, Swift, and the Alto
>> are not sold in US market
>>
True.
The SX4 was sold in the US in both hatchback and sedan versions though.
The discussion did move on to include the UK.
Last edited by: Auristocrat on Tue 13 Nov 12 at 11:26
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No-one normally complains about dramatic thread drift.
US to UK still car sales is minor drift... :-)
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Rubbish, its the well known continental drift, gulf stream almost
Last edited by: Zero on Tue 13 Nov 12 at 12:28
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Suzuki - Suzuki cars exiting US market - Lygonos
