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