Suzuki’s U.S. Unit Enters Bankruptcy, Quits Car Business

American Suzuki Motor Corp. has filed for Chapter 11 protection and says it will stop selling vehicles in the U.S. after 27 years.

The Brea, Calif.-based unit of Suzuki Motor Corp. intends to reorganize to focus on selling motorcycles, all-terrain vehicles and marine outboard engines in the U.S. The parent company in Japan is not part of the bankruptcy.

The carmaker says it is leaving the U.S. market because of weak sales, the unfavorable yen and high costs of complying with state and federal regulations. Suzuki's American sales peaked just above 100,000 units in the mid-2000s. It has sold barely 21,200 vehicles in the U.S. so far this year.

Analysts say the brand also was eroded by narrow margins, poor quality and aging models.

American Suzuki has adequate funds to stay afloat during reorganization and honor its auto warranties, according to the company. It says it will work to convert its 200 dealers to service operations or wind them down.