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American Suzuki Motors files chapter 11, will no longer sell cars in the United States

As much as we knew it was a possibility, we have to say that Suzuki's announcement this afternoon that it is filing chapter 11 bankruptcy proceedings caught us a bit off guard. American Suzuki Motor Corporation - the sole distributor of Suzuki automobiles in the United States - will realign its business to focus on motorcycles, ATVs and the marine market.
What does this mean in simple terms? In short, new Suzuki cars and trucks will no longer be sold by Suzuki in the United States once current supplies run out. Period.
Suzuki cites "low sales volumes, a limited number of models in its lineup, unfavorable foreign exchange rates, the high costs associated with growing and maintaining an automotive distribution system in the continental US and the disproportionally high and increasing costs associated with stringent state and federal regulatory requirements unique to the US market."

Japanese motorcycles moving into forced induction

While turbocharging and supercharging may be nothing new in the automotive industry, motorcycle engines are almost always naturally aspirated. But even that's beginning to change. At the Tokyo Motor Show last week, two major Japanese companies showed off new forced-induction motorbike engines.
Kawasaki rolled in with a supercharged four-cylinder motorbike engine. It offered little in the way of details, disclosing only that the turbine blades were developed in-house to withstand the heat and vibration of spooling up at motorbike speeds.
Suzuki is taking a different approach, however. Its Recursion concept bike packs a turbocharged 588cc two-cylinder engine with a turbocharger and intercooler. The compact package churns out just under 100 horsepower and 74 pound-feet of torque, packaged into a motorbike that weighs just 384 pounds dry.

Suzuki has to take out $45M loan just to shutter US dealers

Bloomberg reports American Suzuki is set to borrow up to $45 million to to close its automotive dealerships and freshen up its it motorcycle and marine business. Suzuki Motor Corporation will loan American Suzuki the funds at three percent below the London Interbank offered rate in order to offer dealer owners a cash payment in exchange for voluntarily abandoning franchise agreements. The company's 216 dealers have 10 days to make a decision on the matter. Under the plan, Suzuki would give dealer owners half of what they're owed in one lump sum, and the dealers would then be able to pursue the remaining debt through the company's bankruptcy procedure.
U.S. Bankruptcy Judge Scott C. Clarkson granted American Suzuki interim authority to borrow the funds, but Bloomberg reports the company will likely return to court in a few weeks to seek up to $100 million. According to Richard Pachulski, a lawyer for Suzuki America, the automaker may owe its dealers somewhere around $50 million.