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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.

2016 Suzuki Baleno is the 'ultimate' hatchback [w/video]

Suzuki unveiled its iK-2 concept at this year's Geneva Motor Show to imagine an inexpensive, compact hatchback for the future. Now just a few months later the Japanese brand has brought that shape to production largely unaltered with the Baleno. The company claims that it's trying to create the ultimate small car, and European customers get to find out in spring 2016. The Baleno doesn't break new ground in five-door hatch styling, but it's an unpretentious and handsome take on the traditional two-box look. The front end flows in an arc up to the windshield, and from the A-pillar back, the design sports a chunky, utilitarian shape. The interior looks somewhat staid with a lot of black plastic and cloth, but silver trim mixes up the monotony. Underneath the new look, Suzuki is making some big improvements. The Baleno rides on a new platform with less weight and more rigidity. The powertrain range also includes the brand's latest 1.0-liter turbocharged three-cylinder engine with 110 horsepower and 125 pound-feet, and it can be hooked up to either a five-speed manual or six-speed automatic. There's also a 1.2-liter four-cylinder with 89 hp and 89 lb-ft available with the same five-speed or a CVT. In addition, the mill is offered with as a mild hybrid with an Integrated Starter Generator. Suzuki says this option boosts acceleration at low speeds but doesn't specify how much extra power there is. Check out the company's promo video below to see the Baleno in motion. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. INTRODUCING THE BALENO Sep 15, 2015 When Suzuki set out to create a hatchback like none before, it first established a key guideline—hold back on nothing. The result is the Suzuki Baleno, a harmonious combination of styling that flows, superb performance achieved through ground-breaking technologies, and smart packaging. To create a new, bar-raising hatchback that is fun to drive and engineered to meet today's consumers' needs, Suzuki wanted to take the compact car to the ultimate level. Baleno chief engineer Kunihiko Ito explains: "We set our sights on developing the ideal hatchback, one that makes no compromises, giving it an elegant, sophisticated and grown-up character.

Suzuki could disappear from new car market quickly thanks to low inventory

Yesterday's announcement that American Suzuki has filed for bankruptcy is all but a death blow for the Japanese automaker's 246 US dealers, but if there's any good news coming out of the situation, it could be the fact that the whole process will likely be quick and painless rather than drawn out. WardsAuto is reporting that with the current inventory and average sales numbers so far this year, there figures to be about three months left for Suzuki's new-car business in the US given current sales rates.
In October, Suzuki sold 2,023 units - a five percent increase over last year - but with just 5,549 left in inventory, it shouldn't take too long to wind down operations. Sales for the brand peaked 2007 with more than 100,000 units sold, but this year, Suzuki is barely on pace to reach a quarter of that amount, with just 21,188 units sold so far in 2012. In addition to poor sales, WardsAuto also notes that Suzuki faced problems due to its reliance on customers with subprime credit.
Suzuki will continue to sell motorcycles, ATVs and marine engines in the US, while the brand's cars will still be on sale in other countries including Canada and Mexico.