Suzuki to close motorcycle factory in Spain: Needs $45 million to clear out of US

Days after Suzuki has announced its decision to declare Chapter 11 bankruptcy and shut down their American Suzuki operations, there is news of the Japanese…

Days after Suzuki has announced its decision to declare Chapter 11 bankruptcy and shut down their American Suzuki operations, there is news of the Japanese auto manufacturer closing down their motorcycle plant in Gijón, Spain. From March 2013, Suzuki plant in Spain, from where Suzuki has been manufacturing both motorcycles and scooters since 1984 will be closed down.

This plant has been in the throes of accumulating losses to the tune of over ‚ā¨30 million since past four years. Suzuki Spanish plant employs 200 workers and produces 9 models such as their GZ 125, Maurader 250, Burgman 125, Burgman 200, UX 125, 150 Sixteen, DR 125 SM, GS500 and GS500F both for European and other markets. Following this decision, Suzuki Motor Spain will only be instrumental as an importer and distributor for Suzuki motorcycles in the country.

Bloomberg has now reported that Suzuki needs a loan of at least $45 million, just to shut down their dealerships and revive motorcycle and marine business in the US. The global economic crisis has had an adverse effect on Suzuki and with activities of Suzuki Motor Spain SAU suffering the most for which remedial action was necessary.

Auto News Release

Further to the recently issued press release from Suzuki Motor Espana (SME), reporting the plan to terminate all of their Spanish-based motorcycle production activities by the end of the first quarter of 2013, we would like to confirm the following information.

The decision was ultimately made due to accumulated losses created by the reduction and general condition of the economy in Europe at present.

UK models that will be affected by this decision include -¬†Burgman 125, 200 and GZ125. Owners of these models can remain confident that parts supply, warranty and general aftercare of these models will remain available through Suzuki GB’s comprehensive dealer network.

While there is no further comment on which manufacturing plant will take over the production of these models, some alternative models built at Suzuki’s Asian country production plants will be considered for the European market.