American Suzuki forges ahead with incentives amid U.S. wind-down
American Suzuki had an estimated 5,000 new vehicles in inventory at U.S. dealers, plus another 1,500 to 1,700 headed to dealerships, when it filed for bankruptcy on Nov. 5.
LOS ANGELES -- American Suzuki, which filed for Chapter 11 bankruptcy last month, will continue to offer consumer rebates and zero percent financing to woo potential customers as the brand winds down its U.S. auto sales operations.
Suzuki sold 2,224 vehicles last month compared to just 1,822 in Nov. 2011, up 22 percent for its second-largest monthly gain of 2012. Year-to-date sales totaled 23,412 vehicles in the first 11 months of the year, down 3 percent from last year.
Incentives, including zero percent financing for up to 72 months or consumer rebates of $500 to $2000 for new Suzukis, helped the brand's results last month. Those incentives will continue in December, Suzuki said today.
American Suzuki filed for Chapter 11 on Nov. 5 to wind down its automotive sales division, buy out its 220 auto dealers and focus on selling motorcycles, ATVs and boat engines.
The company "is pleased with our strong monthly vehicle sales for November, and we look forward to working with our valued dealers across the country to ensure that the remaining U.S. inventory is sold in the coming months," Freddie Reiss, Suzuki's chief restructuring officer, said in a statement.
American Suzuki and Ally Financial received bankruptcy court approval last month to continue consumer incentive and dealer floorplan programs.
Suzuki had an estimated 5,000 new vehicles in inventory at U.S. dealers, plus another 1,500 to 1,700 headed to dealerships, when it filed for bankruptcy. The company plans to continue to honor vehicle warranties through its existing dealer network, many of which will become Suzuki service and parts-only outlets.
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