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Suzuki receives $100 million breather in the US

American Suzuki Motor Corporation (ASMC), a company which declared bankruptcy early last month, has received $100 million through debtor-in-possession financing to make repayment deals with its franchise dealers. Out of these $100 million, $50 million will go towards operations while the balance $50 million will be invested in purchases of new inventory from Suzuki Motor Corporation (SMC).

Though the company is in throes of debt, demand has not suffered and the company saw their sales figures increase to 2200 units, up by 22% during the month of November 2012 as compared to sales during November 2011. ASMC will be purchasing 2500 new cars from SMC that were produced post bankruptcy announcement.

The company will continue to concentrate on production of motorcycles and ATVs along with their Marine division while they will be bringing in additional automobile inventory from Japan to their US dealerships so as to cater to increased demand. At the same time the company will be scaling down or discontinuing their new automobile sales in the US.

About the author

Sagar Patel

Sagar Patel

A first drive in a manual rickety old van was enough to pave the road forward for Editor in Chief, Sagar Patel. When not driving or riding, his dexterity shifts gear to voice passion through words via reviews, and news, all the while, closely monitoring updates from the auto industry.

Email - sagar@rushlane.com

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