US Suzuki distributor files for bankruptcy

Suzuki's US distributor is to file for Chapter 11 bankruptcy protection and stop selling cars, in a plan to restructure its business.

American Suzuki Motor, based in Brea, California, is the sole distributor of Suzuki Motor Corporation vehicles in the continental US.

It said today that it would focus on selling Suzuki motorcycles, all-terrain vehicles and marine outboard engines once it was out of bankruptcy protection.

American Suzuki Motor says it decided to exit the car business because of slow sales, unfavourable foreign exchange rates and high costs due to US regulatory requirements.

The company says it has enough cash to operate during the restructuring and intends to honour all car warranties and buyback agreements.

The bankruptcy and reorganisation are unrelated to Japan-based Suzuki Motor Corp.