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Old 11-05-2012, 07:34 PM   #1
XDCX
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Default Suzuki pulls the plug - Plans to bankrupt their U.S. Auto Sales Division

I guess it's not a huge surprise but news reports from Reuters indicates Suzuki will pull-out of the U.S. Auto Market and they'll use a Chapter 11 bankruptcy strategy so they can server their dealer agreements. For a link to the full report - click here

As I understand it, Suzuki will bankrupt their entire U.S. operations and then the parent company will buy the Powersports and Outboard Motor division out of bankruptcy. Suzuki's 200 U.S. Auto Dealers will be at the mercy of Suzuki as it relates to their remaining vehicles, parts returns, warranty claims, special tools, etc. It will be interesting to see if Suzuki uses their Bankruptcy Power to "Cherry-pick" which Powersports Dealers they want to retain - my guess is they'll use every tool that bankruptcy provides them.

Frankly, I think the Chrysler/GM "quick rinse" bankruptcies have set a bad pattern for business in America. When Isuzu pulled out of the market I recall they treated their dealers fairly - why couldn't Suzuki do the same?
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Old 11-06-2012, 05:14 AM   #2
The StraightShooter
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Well I'm glad I didn't sign up with them in 2010. Almost did it. Wheewww
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Old 11-06-2012, 05:45 AM   #3
rd3311
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Quote:
When Isuzu pulled out of the market I recall they treated their dealers fairly - why couldn't Suzuki do the same?
Yes Isuzu did. They paid all that was owed with no games.

When Peugeot pulled out in 1992, PMA paid all outstanding balances as well.

We hated to see them (PMA) go as they were one of the best OEMs we ever have had to work with, and by far were the best for paying what they owed on a monthly basis.

When IAI (Fiats distributed by Malcolm Bricklin) shut down in 1990, they paid warranty claims and dealer money but did not buy back parts or signage (Chapter 11).

Delorean did not pay anything after they went down in 1983 (Chapter 7) as the court sold their assets to a liquidation firm (Consolidated International). We did not get a penny from them, and they owed over $30k in warranty reimbursements alone back them.
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Old 11-06-2012, 08:09 AM   #4
s-works
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Quote:
Frankly, I think the Chrysler/GM "quick rinse" bankruptcies have set a bad pattern for business in America. When Isuzu pulled out of the market I recall they treated their dealers fairly - why couldn't Suzuki do the same?
because they didn't have this guy




We were a Peugeot Dealer many, many years ago. It was before my time. I know we had a hard time selling the remaining few cars but we got out of them. I never asked how we were treated with warranty and parts issues. I may do that today.
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Old 11-06-2012, 08:48 AM   #5
steve_biegler
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I will be curious how they will treat their Motorsports dealers. It would be a perfect time to get rid of the guys they don't like. Sound familiar??
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Old 11-06-2012, 11:46 AM   #6
zohpy
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Well Suzuki put the icing on the cake of my day today. I'll let y'all know how this one shakes out.
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Old 11-09-2012, 08:29 AM   #7
XDCX
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Originally Posted by zohpy View Post
Well Suzuki put the icing on the cake of my day today. I'll let y'all know how this one shakes out.
zophy - Sorry to hear your store is going to be impacted by Suzuki's decision to send their Auto Sales division into bankruptcy.

I haven't had a chance to keep up on the details concerning how Suzuki plans to treat their OLDCO dealers but I hope they receive better treatment then Chrysler's OLDCO dealers received.
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Old 11-09-2012, 01:39 PM   #8
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The killer here is we were one of the 789, so I guess you could say we've been through this before and nothing would suprise us at all. Heck we may even be better prepared because of it.
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