Suzuki Obtains Bankruptcy Court Approval to Enable Continuation of Auto Financing Programs
BREA, Calif. — American Suzuki Motor Corp. announced last
week that it received bankruptcy court approval of its agreement with Ally
Financial and certain affiliates including American Suzuki Financial
Services Co.
The decision means support for Ally's provision of dealer floor plan
financing and retail financing programs, including 0 percent for qualified
buyers of Suzuki vehicles.
OEM officials said the agreement will help ensure that
ASMC's franchised dealers and consumers have continued access to wholesale and
retail financing for Suzuki vehicles.
As previously announced, ASMC reiterated automobile
warranties will continue to be fully honored, in accordance with their terms,
and parts and service will continue to be provided to consumers through the
company's continued service and parts dealer network.
Furthermore, ASMC said it obtained authority to continue its
financing relationships with GE Capital's Retail Finance and Commercial
Distribution Finance businesses, which provide motorcycle and ATV consumer
financing programs, as well as motorcycle, ATV and marine dealer inventory
financing, respectively.
By court approval of these motions, dealers and consumers of
Suzuki products will continue to have access to wholesale and retail financing
in the same manner as before the company's Chapter 11 filing. The Court also
approved the continuation of existing agreements with Sheffield Financial for
consumer financing for motorcycle and ATV products.
ASMC indicated it started to work within its current automotive
dealer network to help structure a smooth transition from new-model sales to
exclusively parts and service operations.
"ASMC intends to market and sell its remaining U.S.
automobile inventory through its automotive dealer network, many of whom have
expressed interest in continuing to order and receive shipments of Suzuki
automobiles as long as they remain available," officials said.
"Through and after the restructuring, all warranties will be
fully honored and automobile parts and services will be provided to consumers
through the dealer network," they continued.
ASMC announced on Nov. 5, that it plans to realign its
business to focus on the long-term growth of its motorcycles/ATV and marine
divisions and to wind down and discontinue new-vehicle sales in the continental
U.S., following a thorough review of its current position and future
opportunities in the U.S. automotive market.
ASMC determined that the best path to achieve this
realignment in an efficient and orderly manner was to restructure its
operations under Chapter 11. The case was filed in the U.S. Bankruptcy Court,
Central District of California in Santa Ana.
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