1988 Suzuki Samurai on 2040-cars

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Suzuki has to take out $45M loan just to shutter US dealers

Bloomberg reports American Suzuki is set to borrow up to $45 million to to close its automotive dealerships and freshen up its it motorcycle and marine business. Suzuki Motor Corporation will loan American Suzuki the funds at three percent below the London Interbank offered rate in order to offer dealer owners a cash payment in exchange for voluntarily abandoning franchise agreements. The company's 216 dealers have 10 days to make a decision on the matter. Under the plan, Suzuki would give dealer owners half of what they're owed in one lump sum, and the dealers would then be able to pursue the remaining debt through the company's bankruptcy procedure.
U.S. Bankruptcy Judge Scott C. Clarkson granted American Suzuki interim authority to borrow the funds, but Bloomberg reports the company will likely return to court in a few weeks to seek up to $100 million. According to Richard Pachulski, a lawyer for Suzuki America, the automaker may owe its dealers somewhere around $50 million.

Junkyard Gem: 1991 Geo Metro LSi Convertible

Beginning in 1985, General Motors brought over Suzuki Cultuses and sold them here with Chevrolet Sprint badges, which Americans bought in surprisingly large numbers (considering the crash in fuel prices around that time). When the time came for The General to launch a separate brand selling rebadged Japanese machines— Geo— the second-generation Cultus became the Geo Metro. Sporting a fuel-sipping three-cylinder engine, the Metro mostly sold to penny-pinchers interested only in cheap commutingÂ… but GM decided to make a fun convertible version, anyway. Here's one of those cars, finally retired near Denver at age 30. The 1991 Metro hierarchy started with the El Cheapo base and XFi models, at $6,795 (about $13,810 today), then moved up to the better-equipped LSi. The LSi hatchback coupe cost $7,795 ($15,840 in 2021), while the LSi convertible stood at the top of the Metro pyramid at $9,740 ($19,795 now). Believe it or not, Ford managed to undercut the 1991 Metro with its Mazda-built Festiva, priced at $6,620 in its cheapest form. You could buy a Suzuki-badged version of this car, known as the Swift, and the Swift GT had a screaming four-cylinder engine. 1995 and later Metros also had the option of a four-banger, but a 1.0-liter three-cylinder was the only engine available in the 1991 Geo Metro. If you wanted to get close to 60 highway miles per gallon, the Metro XFi had a specially-tuned 1.0 that delivered, though it sent a mere 49 horsepower to the front wheels (the last new car available in the United States with under 50 horsepower— including highway-legal EVs— was the 1993 Metro XFi, by the way). The engine in today's Junkyard Gem was rated at 55 horses. A five-speed manual transmission was standard equipment in every 1991 Metro, though a thoroughly miserable three-speed slushbox could be had for $465 extra (about $945 today). Because most Metro buyers wanted fuel economy first and foremost, automatic Metros are rare (though I have managed to find one in a boneyard). How many total miles? The five-digit odometer means we'll never know. The 1991 Metro convertible came from Japan, but all the others sold here that year were built in Canada. Today, that plant builds the Chevy Equinox. A new convertible for less than 10 grand was a steal in 1991, when a new Mercury Capri convertible cost $12,588.

Suzuki Chapter 11 bankruptcy plans approved by US court

It's pretty much a done-deal now, folks. A US bankruptcy judge has approved Suzuki's plans to wind down its operations in the States. As part of Suzuki's Chapter 11 proceedings, its automotive unit will cease to exist in the US, leaving the motorcycle, ATV and marine units to function as Suzuki Motor of America.
It's not clear how many vehicles are left on the 219 remaining Suzuki dealership lots - the company reported sales of 1,764 in February - but the automaker has assured customers that warranty service and parts will remain available. Suzuki made an investment of $45 million to ensure its past and current customers aren't completely left in repair-work limbo.
Check out the complete announcement from Suzuki below for more information, and please join us in mourning the loss of the Kizashi sedan and SX4 hatch, two vehicles we are legitimately going to miss when this whole sordid affair is done and over with.