By: PRBuzz
Suzuki to Stop Producing American Autos, File Chapter 11 Bankruptcy reports Cheap Auto Insurance Cen

San Francisco, CA ( November 16, 2012 -- Plagued by low sales, fierce competition, and poor foreign exchange rates, American Suzuki Motor Corp. plans to cease its United States auto operations and file for Chapter 11 bankruptcy protection.

In a released statement, the company said it would continue its marine engine and motorcycle divisions. It stated it will also continue to honor warranties and provide parts and service through its parts and service dealer network.

The statement indicated Japanese parent company Suzuki Motor Corp. will not file for bankruptcy.

The company pointed to high costs, tight regulations, foreign exchange rates, and low U.S. auto sales as primary reasons for the decision.

Although U.S. auto sales were up 14% total through October, they were down 5% during the same period of time for Suzuki.

"While the decision to discontinue new automobile sales in the U.S. was difficult to make, today's actions were inevitable under these circumstances," read the company statement.

The corporation plans to stay in close touch with its 246 U.S. auto dealers in coming days. Its statement indicated it "intends to work within its current U.S. automotive dealer network to help structure a smooth transition from new automobile sales to exclusively parts and service operations, or, in some instances, an orderly wind-down of dealership operations."

Suzuki began selling automobiles in the U.S. in 1985. Its most well-known models are the Samurai compact SUV and the Swift compact car.
Analysts said Suzuki's move was to be expected.

"I don't think it's a big surprise given their lackluster sales performance of recent years," said Jessica Caldwell, an analyst with auto information company "They have have low margin, low-priced cars with small volume. That's far from the ideal combination. Over the long term it's hard to sustain a brand on such little volume when you don't have a healthy margin like exotic or specialty brands."

About ( lets online auto insurance shoppers compare quotes from national and top-rated insurance firms that allows them to check latest commercial auto insurance figures. The easy-to-use website also provides information and tips on how best to make an informed decision on the type of coverage to buy and get commercial auto insurance quotes. Besides quick results, it also provides high-quality round-the-clock service for high risk car insurance and cheap car insurance for high risk.

Contact: Ben Jacks
Phone: 9178764563

Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here