American Suzuki Motor Corporation ("ASMC") Receives Bankruptcy Court Approval of Agreement with Ally Financial Inc. and Certain Affiliates ("Ally") to Enable Continuation of Automotive Financing Programs
American Suzuki Motor Corporation (“ASMC” or “the Company”), today announced that it has received Bankruptcy Court approval of its agreement with Ally Financial Inc. and certain of its affiliates (“Ally”), including American Suzuki Financial Services Company, to assume certain agreements with Ally that support Ally's provision of automotive dealer floorplan financing and retail financing programs, including zero percent for qualified buyers of Suzuki automobiles. The agreement will help ensure that ASMC's automotive dealers and consumers have continued access to wholesale and retail financing for Suzuki automobiles.
As previously announced, all 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 ASMC's continued service and parts dealer network.
Also, on November 7, 2012, ASMC 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 November 5, 2012, chapter 11 filing. The Court also approved the continuation of existing agreements with Sheffield Financial for consumer financing for motorcycle and ATV products.
ASMC has begun working within its current U.S. Automotive dealer network to help structure a smooth transition from new automobile 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. 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.
ASMC announced on November 5, 2012, 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 automobile 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 United States Bankruptcy Court, Central District of California in Santa Ana.
Additional information regarding ASMC's business realignment can be found at the Company's website, www.suzuki.com or via an information hotline at 1-877-465-4819.