American Suzuki Motor (ASMC) is planning to stop new automobile sales in the US in order to concentrate on sales of motorcycles, ATVs and marine outboard engines.
The company filed for bankruptcy under chapter 11 of US law and took the decision following a review of its current position and future opportunities in the US automotive market.
ASMC said that it will continue to honor its warranties and provide parts to its automotive customers through the existing dealer network.
The company said while the decision to discontinue new automobile sales in the US was difficult to make, today's actions were inevitable under these circumstances.
ASMC has $346m in debt, of which $173m is owed to Suzuki group companies.
For the first ten months of 2012, the company sold about 21,000 vehicles in the US market, around 1,000 less compared to last year.
