American Suzuki Motor Corporation Leaves the US Auto Market and sugggestions for possible return

In this project, you will apply managerial decision-making concepts and tools to conduct a case
analysis about a current event. You will also have the chance to evaluate a hypothetical
situation related to this decision in order to practice using quantitative analysis.
Case Study: American Suzuki Motor Corporation Leaves the US Auto Market
In 2012, American Suzuki Motor Corporation sought Chapter 11 bankruptcy protection for its US
operations. The US federal bankruptcy judge approved the bankruptcy in 2013 and allowed
Suzuki to establish a new corporate entity that would continue sale of its motorcycles, marine
products, and all-terrain vehicles. Sales of its automobiles, however, were to end after existing
inventory were sold, though car warranties would be honored by the Japanese-based
automaker.
Suzuki Corporation did not close its doors. Rather, it left the highly competitive US automobile
market because of significantly declining sales and other factors and instead chose to
strengthen its position as a leading manufacturer and seller of cars in India and Southeast Asia.
Suzuki cited as reasons for its decision the high cost of maintaining its distribution system and
its drop in sales from over 100,000 vehicles in 2007 to 21,000 in 2012. GM sold its stake in
Suzuki in 2009, which further hindered the Japanese company. By late 2012, Suzuki carried
over $346 million in debt against $233 million in assets and held only 0.2% of the market share
in the US. (By comparison, Toyota had 14.4% of the US market share.)
Suzuki is not alone in leaving the US. Isuzu departed in 2009 after bankruptcy; the same
happened to Saab. The Saturn, Pontiac, Oldsmobile, Hummer, and Mercury brands were retired
during the US recession, and analysts are looking closely at other companies to predict the next
likely brand departure. The implications of Suzuki’s case thus extend beyond its decision to pull
out of the US market.
Final Project
Dec