Suzuki pulls out of the U.S. car market

7 years ago by in Business, Featured

Japanese car maker Suzuki decided to withdraw from the U.S. market due to increasing difficulties to compete, as a strong yen, limited product line and strict regulations are affecting its business.

Suzuki retires from the American market after nearly three decades. The company’s sole distributor on the market, American Suzuki Motor Corp., said on Monday it has filed for bankruptcy protection and will stop selling new cars.

Low sales, a limited number of models, high production costs, and stringent state and federal regulations are among the main factors that led to this decision, the company said.

Suzuki sold only 26,300 vehicles in the U.S. in the last fiscal year, ended March 2012, resulting in a $15.8 million net loss. The company sold a high of 102,000 vehicles in 2007.

Suzuki will change its focus on the U.S. market to motorcycles, all-terrain vehicles and marine equipment such as outboard motors. On the car market, the company is specialized in small vehicles and is, otherwise, the biggest car maker in the key emerging market of India.