Suzuki Announces 213 Dealers Accept Cash Offers To Stop Selling New Vehicles After Company Files For Bankruptcy

Dec 04, 2012 04:17 PM EST | Matt Mercuro

American Suzuki Motors said this week that 213 of their 219 U.S. dealerships have agreed to stop selling new vehicles for cash and maintenance-only contracts.

Suzuki filed for bankruptcy on Nov. 5 meaning that they would be ending all U.S. auto sales to focus on selling boat engines and motorcycles instead. The dealerships have already been asked to give up franchise agreements in exchange for cash settlements and other contracts to sell Suzuki parts according to a press release issued by the company.

The agreements they have made with the 213 companies covers approximately 98 percent of all dealerships in the U.S. according to Freddie Reiss, Suzuki's chief restructuring officer.

The 213 dealerships that took the offer are still allowed to supply service to Suzuki vehicles and sell specific parts according to Automotive News.

"We greatly value our relationship with our customers, and it is very important to us that they continue to receive the necessary support from ASMC during and after our restructuring," Reiss said in a press statement. "As these agreements demonstrate, we are working within our current U.S. automotive dealer network to help structure a smooth transition from new automobile sales to exclusively parts and service operations."

The company had around 5,000 new vehicles at U.S. dealerships when the news was announced last month, and almost 2,000 more vehicles scheduled to arrive before the end of the year. Suzuki has said they plan on honoring warranties through its dealer network according to the press release.

Suzuki dealerships have been busy trying to sell the remainder of their stock and last month was the second-largest sales month of 2012 due to significant price deductions. Over 2,224 models were sold, up over 21 percent compared to the same month last year.

For 2012 as a whole however, sales are down 3 percent, as the company has only sold 23,400 vehicles so far. This is a big reason they have chosen to get rid of their auto industry in the U.S.

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