American Suzuki Motor Corporation has confirmed that it will file for bankruptcy in a California court and stop selling cars and SUVs in the United States when its current supply of new vehicles runs out.
The automaker's share of the U.S. market has been steadily dropping over the last couple of years. So far, the Japanese automaker sold a scant 21,188 cars this year, a figure which marks a 4.7 percent drop over the same time period last year. Its best-selling model is the SX4, a five-door hatchback developed jointly with Fiat that is nearing the end of its life.
Suzuki blames its slow sales on the fact that its lineup mostly consists of smaller cars which don't appeal to the average American driver. To make matters worse, the strong yen in the company's home country of Japan has eaten up a big part of the profit that the automaker makes in the U.S.
After going through bankruptcy, the company's U.S. arm hopes to go back to its roots and focus on selling motorcycles, ATVs and boat engines. It will continue to honor warranties and provide current owners with spare parts and service, however.
A precise timeframe for when Suzuki will leave the U.S. was not given. Stay tuned to Leftlane for more details as soon as they become available.