American Suzuki files for bankruptcy protection

The Associated Press , Staff

BREA, Calif. - American Suzuki Motor Corp. on Monday filed for Chapter 11 bankruptcy protection and said it will cease selling automobiles in the U.S. as part of a plan to restructure its business.

The company, based in Brea, Calif., is the sole distributor of Suzuki Motor Co. vehicles in the continental U.S.

In documents filed with the U.S. Bankruptcy Court in the Central District of California, the company estimated that its debts and liabilities range from at least $100 million to as much as $500 million.

It also said it has between 1,000 and 5,000 creditors.

American Suzuki Motor said it has enough cash to operate during the restructuring and intends to honor all car warranties and buyback agreements. It will work with its car dealerships to help them transition into parts-and-service operations. In some cases, the dealerships will be shuttered, it said.

Once it exits bankruptcy protection, American Suzuki Motor said it will focus on selling Suzuki motorcycles, all-terrain vehicles and marine outboard engines.

It said that it is exiting the car business because of slow sales, unfavorable foreign exchange rates and high costs due to U.S. regulatory requirements.

It sold 2,023 vehicles in October, which was up 5 percent from the same month last year. Its Grand Vitara sport utility vehicle posted a 64 percent jump in sales last month, although American Suzuki did not say how many of them were sold. In May, the last month it provided a breakdown of its sales, it moved 474 Grand Vitaras, while its biggest seller was its SX4 small crossover, of which 1,101 were sold.

The bankruptcy and reorganization are unrelated to its parent Japan-based Suzuki Motor Corp., which intends to buy the American subsidiary's remaining businesses and automotive service operation.

The reorganized company will retain the American Suzuki Motor name, the company said.

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Suzuki goes wild and wacky at Tokyo show

DETROIT — For a brief moment, following Japan’s March 11 earthquake and tsunami, there were fears this year’s Tokyo Motor Show might not happen. It didn’t help that even before the disaster most foreign manufacturers said they’d pull out of the event citing routinely weak import car sales.

The biennial even is back on the calendar, it turns out, and when it opens its doors, early next month, the 2011 Tokyo Motor Show will do what it is often best known for: showcase some of the wildest and wacky concept vehicles ever put on wheels — such as the new Suzuki Regina concept.

Though it clearly adopts some modern aerodynamic detailing, the compact Suzuki show car strikes the sort of retro-futuristic theme that has often fascinated designers preparing for the Tokyo Motor Show — and led to such distinctive designs as the old Nissan Figaro and snail-like S-Cargo.

Not surprisingly, small cars are at a premium in Japan’s crowded capital, with makers looking for ways to make them desirable, both visually and in terms of features and comfort. But fuel economy is also critical, Suzuki noting that its “vision of a next-generation global compact car” will get about 75 miles a gallon in Japanese government testing.

Along with wind-efficient details like the minimalist grille mounted below the front bumper, the Suzuki Regina also makes extensive use of new lightweight materials to hold mass down to a mere 1,609 pounds.

Suzuki will have another quirky concept to reveal in the form of the bright orange Q – which resembles some of the strangely pod-like Nissan Pivo concepts of years past. The 8-foot-long city vehicle is designed to carry two tandem style, which redefines the concept of backseat driving. Described as “ideal for everyday journeys within a radius of about 10 km,” it appears to be battery-powered, though the maker isn’t offering up details yet.

Suzuki focuses on the small car market, so the Regina likely does provide a few hints of what it might have in mind for the future. Lightweighting and aerodynamics will be critical with the maker’s push into battery car technology, Suzuki also planning to show a hybrid version of its tiny Swift model on the Tokyo Motor Show stage.

The plug-in reportedly will deliver battery range of as much as 18 miles before the Swift EV Hybrid switches on its small internal combustion engine.

Copyright 2011 The Detroit Bureau. All rights reserved.

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Suzuki makes a splash with Marine Concept

DETROIT — Suzuki likes to claim there aren’t many obstacles that its Grand Vitara can’t overcome. Not on land, anyway. But its Marine Concept adds a new dimension to what the SUV can tackle.

The concept car, er amphibious vehicle, made its debut at the annual SEMA Show, in Las Vegas, this week, the project developed by students at Ohio Technical College.

They started out with a conventional Suzuki Grand Vitara, opened up the roof, then added a Suzuki outboard motor and a nautical radar arch – as well as a “surfboard review mirror” and an ocean liner fog horn. A nautical-themed paint job rounds out the package.

The goal was to combine Suzuki’s automotive and marine operations – though it is questionable whether the Marine Concept actually can float, never mind navigate open water.

The Suzuki Marine Concept has an outboard motor, a radar arch - even a fog horn - but whether it actually floats is uncertain.

“The Grand Vitara Marine Concept exemplifies the unique combination of passion and innovation, and we couldn’t be more pleased with the finished product,” said Jeff Holland, American Suzuki’s director of public relations.

Whether or not it will ever see the sea, Suzuki plans to storm the beaches at the upcoming L.A. and Detroit Auto Shows with the Marine Concept.

Copyright 2011 The Detroit Bureau. All rights reserved.

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