Tuesday, November 06, 2012
By Manoj Kumawat
Suzuki to stop selling cars in US, pleads low margin as an exit trigger
The American ship seems to be sinking and the car maker to be worst affected by it could be Maruti India parent Suzuki Motor Corp. As per reports with only two cars – Suzuki Samurai and Suzuki Swift as selling well in US, the car maker is facing severe resistance in selling cars as the market seems to be laggard. It is said that it will file for bankruptcy soon and will also pull all its cars from US. However, it will continue to sell its motorbikes and all terrain vehicles. Experts believe that though it was a tough decision to take but the present conditions have forced the car maker to take such a decision. Other reasons that prompted the exit were unfavorable exchange rates and less number of its cars in US.
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It is said that the car maker is getting huge response for its cars in other countries such as India where the recent launch of Maruti Alto 800 and the already big hit Maruti Ertiga as well as the all time favorites Maruti Swift and Maruti Swift Dzire have earned much fame and volumes for the car maker. It is however, a wonder why the car maker could not sell its cars well in US. Specially when the economy is struggling and if the economy is slow, it is the small cars that sell well and there is a wonder small car Swift already present in the line in US.
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Having said about filing bankruptcy, the car maker will be pulling all its cars from US and reports have come in that it will be withdrawing its dealerships soon. With this, the best selling SX4 crossover will also be withdrawn. In operation since 1985, the car maker sold around 21k cars till October which is only 5 percent lower than last year but experts believe that it is the low margin that has prompted the car maker from exiting US.