Photo: Suzuki
Due to sub-par sales and interest from the public, which caused their American branch to go bankrupt, Suzuki have now been given clearance to receive a $45-million government loan, in order to close all of its 216 dealerships, by offering cash payments within 10 days, if they voluntarily give up on the franchise agreements.
The decision to give them the loan was passed by US Bankruptcy Judge, Scott C. Clarkson, who gave the company interim authority, in order to borrow the necessary funds. However, Suzuki representatives will come back to court, in coming weeks, to ask for approval to borrow as much as $100-million.
Regarding the dealers, if they do accept to close up shop by November 30th, Suzuki will offer them half of what they are owed by the distributor, and they can collect the rest of what they are owed after the bankruptcy process is completed - this equates to around $50-million owed just to dealers.
Also, dealers have the legal right to send the estimated 4,000 cars currently sitting in their lots back to the manufacturer, so Suzuki may need to borrow even more money to keep the situation under control, in order to pay off the additional cost of the returned cars.
Story via autonews.com
Regarding the dealers, if they do accept to close up shop by November 30th, Suzuki will offer them half of what they are owed by the distributor, and they can collect the rest of what they are owed after the bankruptcy process is completed - this equates to around $50-million owed just to dealers.
Also, dealers have the legal right to send the estimated 4,000 cars currently sitting in their lots back to the manufacturer, so Suzuki may need to borrow even more money to keep the situation under control, in order to pay off the additional cost of the returned cars.
Story via autonews.com
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