Suzuki to End U.S. Sales

Suzuki just never quite took off in the U.S. Granted, the Samurai gained popularity when Suzuki first launched in the U.S. in 1985. The fun little 4×4 got great gas mileage, could be taken off road and had a convertible top all at a low price. In fact, the discontinued model still inspires Internet fan groups petitioning Suzuki to bring it back. Alas, their wish will not be granted—at least not in the U.S.

Suzuki Motor Corp. announced the end of its nearly 30-years of car sales in the U.S. market, stating it will instead focus on motorcycles, all-terrain vehicles and marine equipment. The manufacturer’s only U.S. distributor, American Suzuki Motor Corp. filed for Chapter 11 bankruptcy protection Nov. 5. According to bankruptcy filings, it had $346 million in debt and just $233 in assets as of Sept. 30. The company follows fellow automakers Saab Automobile and Isuzu Motors Ltd., which also exited the U.S. sales market when they failed to turn a profit here.

Although Suzuki has never made a notable dent in the U.S. auto market—its highest sales of 102,000 cars was achieved in 2007—the company is one of the leading manufacturers in India, where it faces fierce competition from Hyundai Motor Co.

“Suzuki is no longer among the carmakers like Toyota or Honda to have an advantageous position in the U.S., so why not focus on what it is good at?” said Satoshi Yuzaki, Tokyo-based general manager at Takagi Securities Co. “It makes sense for Suzuki to focus on India and other Asian markets.”

According to Autodata Corp. Suzuki’s market share in the U.S. so far this year, based on a mere 21,188 sales, was just .2 percent. Once Suzuki is gone, Mitsubishi Motors Corp. will be the smallest Japanese automaker in the U.S. market, with a market share of .4 percent. By comparison, Toyota’s U.S. market share is 14.4 percent.

Company spokesmen say Suzuki’s U.S. sales will end when its current inventory runs out, but it will retain dealerships in the U.S. to maintain existing vehicles.