The Automotive arm of American Suzuki Motor Company in the U.S. filed for bankruptcy protection on Monday. This will not affect the motorcycle, ATV or Marine prodution, but car sales will stop immediately.
In documents filed with the U.S. Bankruptcy Court, the company estimated that its liabilities range from at least $100 million to as much as $500 million and has between 1,000 and 5,000 creditors.
American Suzuki Motor said it intends to honor all car warranties and buyback agreements. It will work with its car dealerships to help them transition into parts-and-service operations. In some cases, the dealerships will be shuttered, it said.
Suzuki officials blame slow sales, unfavorable foreign exchange rates and high costs due to U.S. regulatory requirements.
The bankruptcy and reorganization are unrelated to its parent Japan-based Suzuki Motor Corp., which intends to buy the American subsidiary's remaining businesses and automotive service operation. Suzuki's strongest automotive operation is in India, where Volkswagon owns a 20 percent interest in the company.
The reorganized company will retain the American Suzuki Motor name, the company said.