Slumping economy preventing Suzuki from helping dealers with floorplanning financing
12/29/2008, 2:03 PM
By Drew Johnson
The ever-tightening credit market is one of the leading causes of crumbling new car sales, but the lack of available credit is also affecting the nation’s dealerships. Many dealerships are struggling to obtain floorplanning funds – the money used to buy inventory – and it looks as though Suzuki dealers might have a particularly tough go of it in 2009.
At a dealer meeting earlier this year, Suzuki vowed to help its dealers lineup necessary floorplanning funds, but is unable to deliver on that promise due to the state of the automotive business.
“The economic crisis has deepened, credit has grown tighter than ever, and our own financial performance has deteriorated both within the U.S. and globally,” Kevin Saito, president of American Suzuki Motor Corp., said in a letter obtained by Automotive News.
Suzuki’s finance arm, American Suzuki Financial Services, does not provide Suzuki dealers with floorplanning financing. However, some Suzuki dealers are currently receiving floorplanning financing from GMAC and Ford Motor Credit.
If dealers are unable to find the financing they need in 2009, it could spell disaster for the Japanese automaker. Suzuki’s sales fell more than 46 percent last month.
12/29, 3:04 PM
posted by:
yarddog82abn
I once owned a Suzuki Hayabusa, did some custom work to it then sold it, the guy that bought it from me has since added a Turbo, Nos, and a full drag pack suspension. It’s mow running with 285HP it is F-ing Crazy to see go down the track… Don’t for get Susuki also now hold the record out in Piks Peack… To bad for the car sales side of things…
12/29, 3:52 PM
posted by:
johnnycanuck
I hate to hear Suzuki is having problems because I still own one disguised as a Chevy Tracker. We’re just now in the process of melting the remains from the worst snowstorm in 40 years here in Vancouver and I don’t know where I would have been without it. I’ve seen so many vehicles in the ditch over the last couple weeks you’d have thought there was a contest. Actually I was purposely going out in the worst of it just because I could. Lock the front hubs, throw her into 4WD and off to the liquor store. I probably could have made some money doing deliveries. The only time it was too bad to drive was when we were supposed to visit the outlaws over Christmas. Well that’s my story and I’m sticking to it.
12/29, 9:35 PM
posted by:
moparsalesman
best selling car on our lot is the suzuki sx4. we sell quite a few crossovers and sport models but definitely more of the crossover models. as i liive in the northeast, awd fuel efficient cars in high demand