Suzuki to Abandon US Car Market due to Strong Yen

Suzuki Motor Corp. said Tuesday it will terminate car sales in the United States, withdrawing from the unprofitable business amid the strong yen to concentrate its resources on other products including motorcycles.

The Japanese automaker said its wholly owned U.S. subsidiary American Suzuki Motor Corp. has filed for Chapter 11 bankruptcy protection. The company will end sales of its cars in the U.S. mainland as soon as when it runs out of inventory.

Established in 1963, ASMC sells cars and motorcycles in the whole of the United States except Hawaii. But the automaker has apparently judged it difficult to maintain profitability in the car business there with its lineup focusing on smaller models.

Suzuki, which started car sales in the United States in 1985, sold around 27,000 units in the country last year.

The subsidiary has been incurring losses in recent years as a firm yen has kept eroding its profits since it started selling exported cars from Japan, after ending production in Canada in 2009 at a plant operated jointly with U.S. automaker General Motors Co.


via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza