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American Suzuki gets $100M in financing to go out of business... buy more cars?

American Suzuki Motor Corporation (ASMC), which declared bankruptcy in early November, has been approved by the courts for up to $100 million in debtor-in-possession financing to enable it to shutter its US car business. ASMC had received a $45 million loan from the Japanese parent company, Suzuki Motor Corporation (SMC), last month in order to make repayment deals with its franchise dealers. At the same time, ASMC was awaiting final court approval of this larger loan.
Out of the newly approved funds, $50 million can be used for operations, and oddly, the other $50 million can be put toward purchases of new inventory from SMC. That's right, even as existing inventory was headed for a smooth exit with the help of incentives, customer demand for orphan Suzuki models is so strong - last month's sales were up 22 percent compared to 2011 - that ASMC plans to purchase 2,500 additional cars from SMC that were built after the bankruptcy announcement. Good news for the owners of those vehicles: the top 50 dealers, representing more than 98 percent of ASMC sales, will become parts and services centers.
The press release below has more information. Unlike its recent tenure here, the end of Suzuki cars in the US looks like it's going rather well.

Suzuki Jimny Lite is a blank canvas for off-road enthusiasts

One of the most desirable new vehicles for sale right now is the Suzuki Jimny. The compact 4x4 was developed with a "less is more" philosophy, giving off-roaders everything they need to traverse harsh terrain, but with an affordable price and none of the luxo-fluff that many modern trucks come with. Now, Suzuki has announced an even more bare-bones Jimny Lite that delivers exactly what four-wheelers want in a no-nonsense, affordable package. First and foremost, the Jimny Lite will still offer the same 1.5-liter four-cylinder engine producing 101 horsepower and 96 pound-feet of torque, along with the same low-range four-wheel-drive and ladder frame construction that make the original such a great little off-roading machine. However, while regular Jimnys have a four-speed automatic option, the Jimny Lite will be offered with only one transmission choice, a five-speed manual.  Rather than alloys, the rig — called the "Diet Jimny" in an image filename on Suzuki Australia's website — will come with 15-inch steel wheels, tougher and cheaper than aluminum. Other exterior changes include halogen headlights rather than LED projectors, deleted fog lamps, and the subtle substitute of plastic textured side mirrors instead of the current gloss black units. Cabin wise, the infotainment touchscreen that includes satellite navigation as standard will be replaced with a old-school in-dash radio and CD player. Bluetooth is still included, though, so you can still stream navigation and digital music from your phone. Additionally, the digital climate controls will be chucked for a manually operated system. This sounds like a dream come true for enthusiasts, who tend to enjoy using their own aftermarket wheels, auxiliary lighting, and stereo options. Though pricing hasn't been announced, the Suzuki Jimny Lite will presumably be even more affordable, giving wrenchers a blank canvas to build their own rigs without paying up front for stuff they don't need. It's like when Toyota offered the 86 RC, a steel-wheeled, unpainted-bumper version of the 86 for race car builds. Unfortunately, like the 86 RC, the Jimny's sale area does not include the United States. The Jimny is available in its native Japan, south of our border, in Europe, Australia, as well as several other markets around the world. We don't see it coming stateside anytime soon, but that hasn't stopped us from longing for a Jimny from afar. With the Jimny Lite, our desire grows even stronger.

Suzuki heads rolling over fuel economy scandal

Suzuki Motor Corporation executives admitted last month that the company had been falsifying fuel-economy tests for some of its vehicles. Today, it was announced that chairman Osamu Suzuki will not become CEO and executive vice president Osamu Honda will step down from his position at the next shareholder meeting, which takes place June 29. Executive bonuses for 2015 will also be eliminated or cut in half. The company is also promising to change its corporate culture so as to allow whistle blowers to get their messages heard. "Suzuki has a top-down culture and it's been difficult for voices from lower down to go to the management," Toshihiro Suzuki (Osamu's son) told reporters, according to Bloomberg. Both Suzuki family members will take a pay cut for the last half of 2016 (Osamu at 40 percent, Toshihiro at 30). Over 2 million Suzuki vehicles were involved in the fuel economy fakery. Japan's transport ministry is taking a closer look at company-submitted data after Mitsubishi and then Suzuki were found to have misled regulators and the public. Related Video: News Source: BloombergImage Credit: KAZUHIRO NOGI/AFP/Getty Images Government/Legal Green Hirings/Firings/Layoffs Suzuki Fuel Efficiency resignation osamu suzuki