Court Approves Suzuki Motor Corp Chapter 11 Plan
Wednesday, March 6, 2013 | 3:00 PM
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PrintBREA, Calif., Mar. 1, 2013 – American Suzuki Motor Corporation (the “Company”) today announced that the Honorable Scott C. Clarkson of the U.S. Bankruptcy Court for the Central District of California in Santa Ana approved the confirmation of the Company’s Chapter 11 Plan, which creditors overwhelmingly accepted. Confirmation of the Plan clears the way for the Company to complete its restructuring process, which is expected to occur on March 31, 2013.
As previously announced, the Plan approved the Company’s sale of its Motorcycles/ATV and Marine divisions and Automotive parts and service operation to a newly organized, wholly-owned subsidiary of Suzuki Motor Corporation. The subsidiary will operate in the continental U.S. as Suzuki Motor of America, Inc. and will use the Suzuki products brand name
“Today’s confirmation is a significant milestone and is one of the last remaining steps in our realignment and restructuring process,” said M. Freddie Reiss, the Company’s Chief Restructuring Officer. “During the next few weeks, we will take final steps to implement the Plan, which will allow the Company to sell its Motorcycles/ATV, Marine, Automotive parts and service divisions. This will promote the long-term growth of the Motorcycles/ATV and Marine divisions, as well as providing automotive parts and service through the dealer network.”
A copy of the Plan is available at www.omnimgt.com. Additional information regarding Company’s business realignment can be found at the following website,www.suzuki.com, or via an information hotline at 1-877-465-4819.
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Can someone translate this into dummy terms so I can understand it?
What they mean is that a company 100% owned by Suzuki Motor Corp has purchased the Bike/atv/auto parts division in the US and will now run those divisions.
Basically, it looks like they sold the company back to themselves through creative paper shuffling to avoid paying a lot of debt, but don't quote me on it.
Now if they could just build me a decent adventure tourer, one much better than my DL1000 I'd be happy. Also, and upgrade on the DR650 has been long overdue.
as long as they keep their R&D that is currently designing their motorcycles
Had a 1980 rm 100 once, wife blew it up on a fire road, never have owned another Suzuki, Hondas and Yamahas.
Yes, the bad quality of a motorcycle from over thirty years ago surely means the manufacturer is incapable of making a decent one today. I've never in my life heard of a Yamaha or Honda blowing up, ever. It doesn't happen. The fact your wife blew it up means you can't know for sure that she just didn't wind it out in first gear.
@mintermoto14 " excellent reason for not owning a RMZ 450.".....said no one. or a DRZ or a Hayabusa or a GSXR or a RM 125-250...etc....
Suzuki went bankrupt?!? Obamanomics is really hitting close to home now. I hope I can still get parts for my stinkin' Suzuki in two years.
Manufactures have to supply parts for 7 years. You should be good. Take a look at the pumpkins.
If I understood it correctly, the Suzuki automotive line was the problem with U.S. Suzuki and it was dragging everything else down. I believe they are eliminating the sale of the automotive products (except parts) in the U.S. and carrying on with a new company that encompasses only the motorcycle, atv, marine etc. What I'm not as sure about is whether they are continuing to produce cars and suv's worldwide and specifically if they are still available in Canada.
Yes @ bynner99,mtbmitch and klrman1 you are all pretty much correct. I have been followinf this in the news paper also for quinte some time. The original problem was the Automobile line. I think this miht work out for them.
I gotta laugh out of some of the other posts..... I am pretty much ashamed of the American educational system that we have now. I graduated from High school in74 with an academic scholorship but started scool a year early. I did take typing in my senior year but it does not show with my bad fingers.?
In layman's terms, the automobile division has been losing money and putting a drain on the entire company for quite some time despite the fact that the motorcycle/atv/marine division has been profitable. By separating the good from the bad and exiting automobile sales in the U.S. they will be able to unwind that company while continuing to grow the motorcycle side.
If you are an MX guy (like most of us on this site), this is absolutely a good thing. If you are a creditor on the auto division side you aren't happy because now the deep pockets are gone. That is the country we live in however and how bankrupcty laws can work here.
This is why you buy a Honda and not a potential Cannondale.
I occasionally ride my economic commuter around, which is a Hayabusa. Gets three times the gas mileage of the Red Racer.
Hey Speedshifter:
Amazing how anyone (you) can interpret this news as the fault of a President, or any other individual person in the country. You should get a clue about economics and leave your political thoughts off of this blog. Your lack of understanding how a business model operates -much less knowing the first thing about how Suzuki’s corporate business model was being handled, or mis-handled, in this case- is clearly, pathetically and amusingly on display for all to enjoy.
I would imagine you think The President took down Indian, Hodaka and Buell too.
On the flip side I guess that means Obama is also to blame for the successes of:
Honda, Yamaha, Kawasaki, KTM, Harley Davidson, Victory, Brammo, Zero, BMW, Triumph, Ducati, Aprilia, MotoGuzzi, Bimota, MV Agusta, AJS, Piaggio, Kymco, Beta, Husqvarna, Hyosung, Laverda, MZ, Norton, Royal Enfield, Sachs Gas Gas, Derbi... Go take a ride, open your visor just a bit and get some fresh air... you need it.
mintermoto14, not sure how your bike blew up but my family has owned nothing but Suzukis and we've had ZERO problems! We've owned the RM85, RM125, RM250, two RM-Z250s, RM-Z450 and a DR-Z400SM for school commuting. And just to contribute, yes the automotive division in the USA is shutting down and they are putting all their resources into the motorcycle division.
i buy hondas the last 10 years just for quality.having said that back in my pro days,my 1980 - 82 rm125&250; fullfloaters were the best bikes i ever raced really trusted the handling.
Welker....you should either... take the ten seconds that it would take to run your computers spell check....or quit drinking
The already horrible resale value of a Suzuki automobile just dropped even more. You might as well drive it til the wheels fall off now (shouldn't take long) because they are worthless.
Suzuki bikes may work well but now, but overall quality is lower than its competition, mid and late 80's suzukis broke powervalves and ate pistons faster than ups could bring new ones. Quadracers and quadsports were just garbage compared to 250 x or 250r, 90's rm's clutches were useless, Hinson only way to fix them. 450 quads have trans problems. Honda has been in business longer and higher quality and resale across the board, Yamahas are built with service in mind, simple tasks are easier, good stuff. Ktm's are of very high quality, my boss at the Suzuki ktm dealer I worked at ran his 86 ktm 250 13 miles without coolant in an enduro, finished the event, tore it down honed cylinder and replaced only a ring, their quality of components is second to none just a little behind in the refinement department and it is coming. I don't have time to complain about Kawasaki, ride red blue or orange!!!!
@claxton looks like the potential Cannondale..lol ..keeps handin team red a beatin every week now........@upsman...its sort of like dog owners...if you have problems ...it could be YOU and not the dog.
I blame B.H. "Soetoro" O. for MotoXScript's extreme leftist propaganda so much that I went out on a public road today and did a burnout on my Hayabusa to endear myself to some homies that were on the sidelines. Tomorrow I'll do a burnout so huge that they will choke to death on the smoke, then I'll put my new tire (a Pirelli Diablo 180/55RZ17) on the back. Man, that rear tire makes the bike handle like a 600 in the turns! It lays over like a 125 two stroke! If you've got a Hayabusa, you've got to try that tire on the rear! Forget going with a 190/55, you're playing yourself if you think that fatter is better!
....chapter 11....while the guy leading the SX series is on a Suzook. Not sure who is managing things at Suzuki, but they need to clean house and start over.
As far as Suzuki's blowing up, never happened to me. I still have my 2007 DL1000 all tricked out and have owned an RM125 and two different year model RM250's in the past. After finishing racing on my 125, I ran a whole year riding the back trails of our mountains with it and never mixing any oil in the gas just to see how long it would hold out and guess what, it never quit on me, ever. So far, they have all been incredibly reliable.
@tonewall--- I was not the dog or the owner, I was Cesar Milan so to speak. I worked at the dealership where the repairs took place. I admit they are vastly better than they used to be, but still sub KTM Yamaha and Honda if you want to talk quality and fit/finish. Not ME.
Speedshifter- the lengths of obscurity (the Soetoro family name) you travel for a laugh are painful. I hear crickets when I read your attempts at humor. Guys like you give motorcycling a bad name. You should have had a background check for your motorcycling license AND your guns. Question: How do you keep your white pointy hat/mask on when you’re terrorizing your neighborhood on your ‘Busa, doin’ burnouts hoping the ‘homies' will 'choke to death on the smoke’? 200 mph tape I would imagine, right?
Ss- You’re a prime example of the pot calling the kettle black. How you fail to realize you’re the god of propaganda on these reader response blogs is comical. Nothing I said points left. I have a moderate POV. I believe there are plenty of things both sides have going for them and also plenty of things that both sides need to fix to reach a middle ground. That’s how Democracy works, knuckle-head. My thoughts and opinions only seem ‘left' to you because you’re so far to the right.