Suzuki

Why Suzuki Discontinued Its Presence in the US Market

Suzuki is a well-known Japanese brand that sells cars and motorcycles all over the world. The business, formally known as Suzuki Motor Corporation, has a long history and provides a large selection of automobiles and goods. Suzuki is well-known for manufacturing motorcycles and ATVs in addition to automobiles. The brand is well-known in the motorbike industry and provides a large selection of two-wheelers, such as sport bikes, cruisers, and off-road motorbikes.

In 2012, Suzuki ended its car sales in the US due to a number of issues and difficulties the firm encountered in the US market. The following are some of the main causes behind Suzuki's decision to withdraw from the American market:

• Exchange Rates: Suzuki's profitability was impacted by changes in the value of the Japanese yen relative to the US dollar. The company's profit margins were lowered by the strong yen, which increased the cost of manufacturing cars in Japan and selling them in the United States.

• Dealer Network: Compared to its rivals, Suzuki's U.S. dealer network was comparatively tiny and less broad. This made the brand less accessible and visible to prospective buyers.

• Vehicle Lineup: Suzuki had a short and mostly focused range of small cars and compact SUVs available in the United States. It did not offer a wide selection of cars that satisfied the more general requirements and tastes of American buyers. This made Suzuki's products less appealing in a market that was more inclined towards trucks, SUVs, and larger cars.

• Economic Difficulties: The 2008 global financial crisis had a big effect on the car sector, which included Suzuki. Both consumer spending and auto sales decreased as a result of the economic crisis. During this time, Suzuki experienced financial difficulties similar to those of many other automakers.

• Limited Market Share: In the US, Suzuki found it difficult to make a big name for itself. Well-known Japanese automakers like Toyota, Honda, Nissan presented a strong rivalry for it. Due to its low market share, the company found it challenging to successfully compete.

Even after leaving the US market, Suzuki promised to keep providing warranty and service support to its current clients. This guaranteed that owners of Suzuki vehicles today will continue to have access to parts and servicing. The company had difficulties with its restricted product portfolio, difficulty building a strong brand, and a dearth of popular models that appealed to American consumers.

Furthermore, Suzuki's choice to declare bankruptcy in 2012 made its US operations even more difficult to manage. Although the company's motorcycle segment was the subject of the bankruptcy case, it affected its whole operations and its capacity to make investments in the US market. In the end, Suzuki decided to stop selling cars in the US due to a combination of financial issues, poor sales, and a fiercely competitive market.