Japan's Suzuki shutters US car business, files for bankruptcy
Published on Nov 6, 2012 11:23 AM
TOKYO (AFP) - Japan's Suzuki said on Tuesday it would shut down its money-losing car business in the United States and file for bankruptcy, citing a strong yen and weak demand for its small cars in the US market.
But American Suzuki Motor Corp. (ASMC), which said it has debts of US$346 million (S$424 million), added that it would continue selling motorcycles, all-terrain vehicles and marine products - such as outboard motors - in the country.
Suzuki sold about 26,000 vehicles in the US in 2011, a fraction of rival Japanese automakers such as Toyota, Nissan and Honda.
ASMC "recognised it will be unable to maintain profitability with respect to its automobile marketing business", the firm said in a statement.
To continue reading, log in if you are a subscriber
Enjoy 2 weeks of unlimited digital access to The Straits Times. Get your free access now!