(MENAFN) Japan's Suzuki Motor Corp announced it will give up its loss-making automobile sales business in the US after nearly three decades, Reuters reported.
Suzuki said it would file for Chapter 11 bankruptcy by its US unit in federal court in California to shut down the auto business. It plans to focus on motorcycles, All-Terrain Vehicles (ATV) and boats instead.
The company said that its automobile business in the US was hurt by a strong yen and a limited choice of vehicles that failed to impress consumers.
American Suzuki Motor Corp, the sole distributor of Suzuki vehicles in the continental United States, will file for bankruptcy with USD346 million in debt, of which USD173 million is owed to Suzuki group companies, the company said.
The Japanese parent company plans to buy the motorcycle, ATV and outboard engine operations out of bankruptcy and shift its auto business to service existing vehicles on the road.
Suzuki's sales in the US declined 5 percent to 21,188 vehicles during the first 10 months of 2012 compared to a year earlier when the overall market was up by 14 percent.