Suzuki Will Drop 98 Under-Performing Dealers

03/27/2013 @ 1:02 pm, by Jensen Beeler8 COMMENTS

Suzuki Will Drop 98 Under Performing Dealers suzuki gsx r1000 engine cutaway 635x396

Last week we reported to you that Suzuki Motor of America was set to cut 10% to 20% of its powersports dealerships, as a part of its corporate restructuring and bankruptcy of the now defunct American Suzuki Motor Corporation. Clarifying that news, Suzuki has given a clearer figure, saying that 98 of the company’s 930 dealers will be getting the axe.

According to Suzuki, the roughly 10% of dealerships that did not see their contract assumed by Suzuki Motor of America accounted for only 2.5% of the company’s retail sales in the past 12 months (2.8% of retails sales in the past three years), making Suzuki’s actions more of a culling of the herd than anything else.

Talking to PowerSport Business, ASMC’s Senior Director of Sales and Marketing Larry Vandriver explained that while Suzuki was reducing its dealer base to 832 shops, the company was still looking at strategic market areas to setup new Suzuki dealers.

Although Suzuki has said its bankruptcy in the United States would not affect its motorcycle business, it looks like the Japanese OEM is taking the opportunity to streamline its business operation here in the USA.

Source: PowerSport Business

Comment:

  1. paulus - Thailand says:

    as long as the mighty BUSA remains for sale I would not care where I had to travel to buy it!

  2. Bob says:

    98 Under-Performing Dealers? Are the delears really under-performing? Or is the Suzuki line of motorcycles just so outdated and viscerally boring compared to the other manufacturers that no one is really interested? So, if you make a product that no one wants, is it really the fault of the store selling it?

  3. Singletrack says:

    Suzuki Canada announced it’s shutting down their car business in Canada too. The Powersport busines will remain.

    In Canada, Suzuki put bikes into many of the car dealerships. They brought the car sales business model to selling bikes,… with predictable results. Closing these combined dealerships should also result in a reduction of powersport dealers. I’m sure the Suzuki car dealerships weren’t subsidised by the bikes.

  4. proudAmerican says:

    Any chance of posting a list of the 98?

  5. Bob: If 10% of your dealers account for 2.5% of your total sales, then by any definition I’d say they are under-performing.

    proudAmerican: What is this? A high school musical audition? Yeah, I’ll post the list outside of the gymnasium after 4th period.

  6. Gritboy says:

    Makes good financial sense to me. There should really be a % sales bar based on inventory that’s required to maintain an “authorized” dealership status to ensure the owners of each one take sales and support seriously.

  7. Norm G. says:

    re: “Any chance of posting a list of the 98?”

    you’ll find out soon enough.

  8. Norm G. says:

    re: “In Canada, Suzuki put bikes into many of the car dealerships. They brought the car sales business model to selling bikes,… with predictable results.”

    i would’ve liked to see them succeed with that. even here in the states i don’t think many made the connection that the cars and bikes were related.