Suzuki is not one of the most recognized car brands in America, but it sure has been trying to increase its market share. After years of failed attempts to gain a competitive edge in the automobile industry in America, Suzuki has other plans for the future of the company through debt reorganization.
Restructuring For The Future
Known mostly for microcars, Suzuki has not been as successful in car sales in the U.S. as they have in other countries around Europe and Asia. However, a mere 102,000 sales last year isn’t enough to keep their efforts in America going. As a result, the Japanese automaker filed for Chapter 11 bankruptcy in hopes of restructuring debts and moving forward.
Suzuki listed close to 5,000 different creditors in their filing, with debt liabilities ranging between $100 and $500 million. Rather than cease operations entirely, Suzuki plans to terminate their auto sales in America so that they can afford to honor warranty obligations on already purchased or leased vehicles. The plan is to shift their business focus towards motorcycle, ATV, and boat engine sales; a market in which they have been able to retain a competitive edge.