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Suzuki Halts Production in North America This Year

The economic recession is far from being over and Suzuki is just the living proof that supports this statement. According to the company's CEO, the Japanese manufacturer will stop production in North America this year, with the collapsing sales in the region obviously the main reason. Suzuki has been producing cars in North American since 1989 when it formed the CAMI joint venture with General Motors.

The production facility in Ingersoll, Ontario is currently building the Suzuki XL7 SUV - the single model produced by Suzuki in North America - plus two vehicles belonging to General Motors, namely Chevrolet Equinox and Pontiac Torrent.

But the most interesting fact comes from the official sales figures the company reported for the XL7. According to Autonews, CAMI rolled off its assembly lines no less than 12,407 XL7 models last year but the numbers fell shockingly this year, with only four units produced until this Sunday.

"It is an America-specific model," says Suzuki spokesman Hideo Kojima. "But since the subprime loan problem, that segment has been hit the hardest. So we decided to suspend it."

Still, Suzuki will continue the CAMI joint venture even if General Motors goes under Chapter 11 protection - and according to the latest reports, such a scenario is very likely to happen. However, it's not yet clear whether the Japanese automaker will use the Ontario production facility to build another model or re-start the manufacturing of the same XL7.

"The possibility that CAMI would be forced into closure or a production stop is 120 percent impossible," the company's CEO said in a statement released yesterday. It is a central pillar in the reconstruction plan, so I am not worried about it."
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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