Some days back, Suzuki had rolled up its operation from US and now it seems that the next turn is towards Canada. Though, one can say that, may both of the countries be sharing similar vibes to an extent.
The rattling sound from Suzuki’s Canadian operation was started sneaking since the last November, when US based sister company announced its exit from the venture. The carmaker tried too hard to sustain operations in that territory but failed to comply with output against the costing figures.
Suzuki will now focus on motorcycles, ATV and marine engine business in the Canadian division, while warranties and spare parts would also be looked upon after the exit, so that existing number of vehicles may not get rusted down in garages during their life.
On a conclusion, around 55 dealers are scattered in the whole of Canada who managed to sell just 5,458 cars in 2012, and another 30% drop in sales had been experienced for first three months of 2013. All these strata had lead to built Canadian-spec vehicles also.
Suzuki will leave the Canadian territory after completing ‘2014 model year’ there itself, without filing bankruptcy.
However, the quitting decision is not a big surprise for Canadian dealers, as per one of them, “Suzuki sales have been slowing down for the past few years […] Suzuki is a strong company worldwide but their share in North America was so small that they weren’t making money […] so they made a business decision.”
Yet, it is still not confirmed that whether Suzuki will follow the suit during exit or not.
