Richmond Hill, Ontario-based Suzuki Canada Inc. announced today that it is business as usual, in spite of a blockbuster announcement earlier in the day that its US-based affiliate, American Suzuki Motor Corp., has filed for Chapter 11 bankruptcy protection.
A Suzuki Canada press release notes that "While American Suzuki's realignment of its operations will be achieved through a restructuring of its operations under Chapter 11 of the U.S. Bankruptcy Code, Suzuki Canada is not contemplating any form of court-supervised restructuring in Canada.'
As part of its Chapter 11 reorganization, American Suzuki Corp. will discontinue selling Suzuki automobiles in the US, and concentrate on the company's marine, motorcycle and ATV business. That could ultimately prove beneficial for the marine segment if the newly reorganized company devotes a greater proportion of corporate resources to its boating products.
"While Suzuki Canada will continue to monitor market conditions in light of the US filing, we have no current plans to change Suzuki Canada's operations as a result of the events in the US,' said Bill Porter, Senior Vice President, Suzuki Canada. "Suzuki Canada, including its Automotive Division, remains fully open for business in Canada, and will be honouring all customer commitments.'
The decision by American Suzuki to restructure comes as the US economy continues to struggle, with job creation continuing to fall below monthly projections and unemployment holding stubbornly near eight percent.