On Monday, the U.S. company Suzuki Motor Corp, the sole distributor of Japanese cars of concern in the U.S., filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code. Debt amounted to 346 million dollars.
Suzuki Motor Corp based its decision to leave the car market is unfavorable exchange rate, lower sales and higher costs of distribution.
Our problem - it#39;s low sales volumes, a limited number of models, unfavorable exchange rates, high costs - said in a statement Suzuki. - The decision to discontinue sales in the U.S. is very difficult for us, but it is inevitable in the circumstances.
Representatives Suzuki stressed that they will continue to sell in the U.S. motorcycles, ATVs and other equipment. In addition, owners of Suzuki brand vehicles will not experience problems with the supply of spare parts or servicing their cars.
Suzuki shares lost 1.7% in early trading on Tuesday after the news of the cessation of sales in the U.S., reports the BBC.
