BREAKING NEWS: Suzuki begins cutting motorcycle, ATV dealers

Publish Date: 
Mar 20, 2013
By Mary Green Slepicka

BREA, Calif. - Suzuki will be culling its U.S. dealer network after its Chapter 11 reorganization is finalized later this month, Dealernews has learned.

UPDATE: Terminated dealerships represent '2.5 percent of sales,' says Vandiver. To read, click HERE.

Dealers this week began receiving letters from American Suzuki Motor Corp. (ASMC) notifying them whether their franchise would be picked up by Suzuki Motor America Inc., which is the name of the reorganized company and designated the "purchaser" in the Chapter 11 filing. 

"ASMC is assuming certain dealer agreements and other contracts and assigning them to Purchaser, while the majority of ASMC's remaining contracts will be rejected," states the letter, which was obtained by Dealernews. Dealers whose contracts are not being renewed are being told that their franchise agreements will be rejected and they will no longer be authorized Suzuki dealers as of March 31.

Cancelled dealers have until March 27 to file an "Other Settling Creditor Claim" to receive $10,000 in compensation. Suzuki also stated it will repurchase cancelled dealers' new motorcycle and ATV inventory, plus parts and accessories.

Dealernews has contacted Suzuki for additional information and is awaiting a response. Check back here for further updates.