Suzuki Samurai Jx 4x4 1988.5 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: 1998 Suzuki Swift, Schnorchel Edition

To enable the use of internal-combustion engines underwater, German submarines during the later years of World War II used a pipe system swiped from the Dutch to suck in air and spit out exhaust. This rig was known as the Schnorchel, and a similar setup can be used on modern trucks to keep the engine from inhaling water or dust during river-fording or off-roading. In fact, you can buy a new Ford Bronco with a factory schnorchel (or snorkel, if you prefer the English spelling) right now. Purchasers of new Suzuki Swifts, however, had no such factory — or even aftermarket — option, and so the final owner of today's Junkyard Gem had to fabricate one using hardware-store components. Yes, this is a fully functional air-intake snorkel, made from PVC pipe and entering the engine compartment via not-so-precision holes sliced through the fender and inner fender. Once in the engine compartment, the pipe connects directly to the engine's throttle body. Sure, for serious underwater use you need to waterproof the distributor plus any sensitive electrical components, not to mention find some way to keep water from getting into transmission vents and the like. We can assume, however, that this snorkel wasn't intended for sustained underwater use. Other limitations of the Swift as an off-road machine, such as suspension design, ground clearance, and lack of four-wheel-drive, may have become apparent once the snorkel was installed. There are some wheel flares installed, to enable the use of oversized wheels and tires. The Swift is the same car as the Suzuki-built Geo Metro, which became the Chevrolet Metro starting in the 1998 model year. Known in its Japanese homeland as the Cultus, these cars were sold in every far-flung corner of the world. It appears that you could buy a new Cultus (with Margalla badges) in Pakistan as recently as a few years ago. This isn't the first interestingly modified second-generation Swift I've found in a Denver-area car graveyard in recent years. Perhaps the "Slokyo Drift" 1996 Swift was modified by the same person. There's just something about a tiny, fully depreciated car that inspires creativity. The 1998 Geo Metro was available with either a 1.0-liter three-cylinder engine or a 1.3-liter four-banger, but every new Swift sold here that year was a big-block car with the 1.3 and its 70 horsepower. This one even has the five-speed manual transmission, for added driving fun. Just 166,280 miles on the clock.

Which automaker's 84-year-old CEO is making investors nervous?

We haven't heard much about Suzuki since it decided to leave the US market in 2012, but things are going well for the little automaker these days with the recent announcement of record annual profits. It would seem that investors should be ecstatic, but they are starting to question the man at the helm. Company president and chairman Osamu Suzuki is now 84 years old and is guaranteed at least one more year as the leader, but shareholders want to know who is taking his place when the inevitable happens.
We're not being ageist, here. As long as the Suzuki can run the company to the satisfaction of investors, he absolutely deserves the top spot. According to Bloomberg, the issue making shareholders so edgy is that the business doesn't have a transition plan in place. The president obviously isn't a young man, and folks are worried that if something happens suddenly, there could be chaos deciding a successor and a free-falling stock price.
Suzuki's tenure at the company is somewhat astounding. He married the granddaughter of the founder and took her name because the family had no male heirs. In world where many people hope to retire as soon as possible, he's worked for the same automaker for the last 50 years, including stints as company president from 1978 to 2000 and 2008 to the present. Investors aren't questioning the president's ability as a business leader; they just want a clearer understanding of the automaker's future direction.