Following its decision to leave the car-selling business and finishing its bankruptcy metamorphosis, American Suzuki Motor Corporation is now a defunct company, with Suzuki Motor of America officially taking over as Suzuki Motor Corporations’s wholly owned sole-distributor of Suzuki motorcycles, ATVs, marine engines, and automotive parts in the continental United States.
When news came that American Suzuki Motor Corporation was to file for Chapter 11 bankruptcy, the news was pitched that it would benefit the company’s motorcycle interests, as Suzuki would no longer be tied-down with its ailing automotive division in the USA, and instead would be left to focus on its powersports offerings.
While that general statement may remain true, Powersports Business has learned that the Japanese OEM plans on closing 100 to 200 of its roughly 930 powersports dealerships. This would mean a roughly 10% to 20% reduction in Suzuki dealerships nationwide — a decision that has more than a few dealers feeling a bitter taste in their mouths.
From the desk of the Honorable Scott C. Clarkson of the U.S. Bankruptcy Court for the Central District of California in Santa Ana, American Suzuki Motor Corporation’s plan for Chapter 11 bankruptcy has been approved. Overwhelmingly supported by the company’s creditors, American Suzuki can begin restructuring its business operations in the United States, which will include shutting down the company’s automotive endeavors.
In turn, American Suzuki’s new business focuses on the company’s motorcycle, ATV, marine, automotive parts divisions, and will consist of a new wholy-owned subsidiary of Suzuki Motor Corporation. This new company will operate under in the United States under the new name: Suzuki Motor of America.
Certainly wanting to bury the news in the after-work hours, American Suzuki Motor Corporation has just announced that it is filing for Chapter 11 protections, as the American subsidiary of Suzuki Motor Corporation heads into bankruptcy and business restructuring.
Pivoting its business to focus on marine and motorcycle/ATV sales, Suzuki will wind-down and ultimately stop selling cars in the US market. In its press release, Suzuki says will honor all current warranties, and parts and servicing will continue to be available to Suzuki automobile owners.
Today’s news should have little to no immediate affect for Suzuki motorcycle owners in the USA, as the Chapter 11 proceedings are focused more around Suzuki dumping its failed automotive business here in North America, than anything else.
While it remains to be seen how the Japanese company will restructure its American office, the move in fact could be a boon to motorcyclists, as it could mean some life could be pumped back into ASMC. The American Suzuki office has suffered recently from under-staffing and disorganization, and the company could benefit from a proper reorganization.
Time will tell how effective Suzuki’s restructuring will go, and we certainly haven’t heard the full extent of this news item yet. As the ball of yarn untangles, check out the full press release is after the jump. Suzuki’s letter to motorcycle owners is here, car owners here, and there is also an FAQ.
American Suzuki has recalled 4,969 units of its 2012 Suzuki GSX-R1000 superbikes (FYI, the NHTSA has conflicting data on its recall sheet, which suggests that 2009-2011 models are affected, not 2012 — Ed.). The recall is due to loose bolts on the kickstand, which may cause the stand’s interlock switch to fail. If left unattended the fault on the switch will cause the motor on the Suzuki GSX-R1000 to cutout, which could result in a crash.
You know when a company starts quoting sales figures “in the last nine months of the year…” that the numbers from the first three months that they are not mentioning have to be pretty bad. Such is the case with American Suzuki, though the company’s overall performance continues to flounder in the this economy. In Suzuki’s fiscal nine-month period (April 2011 to December 2011), sales to North American dealers were up 160%, as wholesale unit sales to dealers rose from 13,000 units (mostly ATVs) in 2010 to 34,000 units in 2011.
However despite shipping more models to dealers, Suzuki’s sales in North America were actually down 11.5%, as the Japanese company sold only 31,000 units in the nine-month period, compared to the 35,000 units it sold during the same fiscal period last year. Because of this dip in consumer sales, Suzuki has revised its sales predictions for the end of its fiscal year in North America from 50,000 units to 46,000 units. American Suzuki sold 51,000 units to consumers in 2010, meaning that for the 2011 fiscal year, Suzuki is expecting a 9.8% retail sales decline compared to last year.
AMA Pro Supersport racer Elena Myers will have a chance to flog one of the Rizla Suzuki GSV-R bikes at the Indianapolis GP this year. Getting an opportunity to acquaint herself with the MotoGP machinery, Myers will do a few laps at 12:45 PM on Thursday before the Indy GP, in a PR event put together by American Suzuki. After a similar publicity event fell-through last year, the ride will be Myers’s first on a GP bike, and hopefully a glimpse into the future, as the young California native has made it clear that the premier class is where she wants to take her career.
“Words cannot describe how excited I am to ride the Suzuki GSV-R at Indy during the MotoGP weekend this year,” said Myers. “We had talked about it last year, but things didn’t work out, so here’s a big thanks to everyone involved for making this possible. When I sat on the bike last year, it felt like it was made to fit me. So actually being able to spin a few laps on it will be quite the treat. I’m really looking forward to the weekend.”
Finally we get some good news on Elena Myers’ search for funding for the 2011 season. The 17 y/o phenom spent the 2010 kicking the boys’ butts in AMA Supersport, even winning Race 1 at Infineon, and becoming the first woman to win a professional American motorcycle race (depending on how you look at it), only to be left searching high and low for racing support for the 2011 season.
She’s cute and she’s fast, and we were fairly dumb-founded to hear she was having trouble finding sponsors to go ride for this season, but luckily that all seems to be past the California native now. Announced this past weekend that she’d been signed to American Suzuki, Myers has also secured Dainese as an apparel sponsor for 2011. To go along with wearing the Devil on her back, Myers has a very interesting sponsorship deal that American Suzuki has put together, which sees the Californian using social media to engage fans with the Suzuki brand.