Suzuki Borrows $45 Million to Close Dealerships
In an interim court ruling this morning, American Suzuki Motor Corp. was authorized to borrow $45 million dollars to close its struggling franchise dealerships According to reports from Automotive News, the borrowed money allows Suzuki to make cash payments to all 216 of its automobile dealerships in America within 10 days if they willfully remit franchise agreements. Earlier this week, Suzuki put its American distributor into bankruptcy in a bid to end US losses. Analysts state that there may be as many as 4,000 unsold Suzukis currently sitting on dealership lots, a number too immense to sell, especially when 69-percent of Suzuki dealerships in the US currently sell fewer than 5 cars per month. Automotive News also speculates that Suzuki will return to court in the coming weeks in an effort to borrow more money, up to $100 million dollars—a sum that would enable the motorcycle giant to pay its US auto dealerships exactly half of what it owes—if the dealerships choose to end its franchise agreement by the end of the month. At the moment, it is unknown whether the dealerships will do so, or whether it is even in their best interests. As we’ve said before, now be a great time to get in on a Suzuki Kizashi. Source: Automotive News
Jaguar has announced it will be recalling 4,195 XF models assembled for the 2010 through 2012 model year.