American Suzuki Motor Corp.has filed for Chapter 11 bankruptcy protection in order to reorganize in a way that will have it stop selling new automobiles in the U.S. and focus on growing its motorcycle/ATV and marine divisions.
"While the decision to discontinue new automobile sales in the U.S. was difficult to make, today's actions were inevitable under these circumstances," the company announced Monday. It cited difficulties including low sales volumes, a limited number of models in its line-up, unfavorable foreign exchange rates, and "the disproportionally high and increasing costs associated with stringent state and federal regulatory requirements unique to the U.S. market."
It sold 2,000 vehicles in October, according to the AP.
Suzuki will continue selling off its inventory while under bankruptcy protection, and assured car buyers that warranties will be honored, adding that parts and service operations should continue uninterrupted.
Suzuki Motor Corp., the 100% interest holder in ASMC, is not a debtor in the chapter 11 filing, according to American Suzuki Motor Corp. Click here for company links to more information on the reorganization.
The article American Suzuki Files for Bankruptcy Protection originally appeared on Fool.com.
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