2008 Suzuki Grand Vitara Jlx Sport Utility 4-door 2.7l 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.

Volkswagen drops "GTi" lawsuit against Suzuki

Way back in 2004, Volkswagen took umbrage with Suzuki being granted permission to use the nameplate "SWIFT GTi" for a performance variant of its small-car offering (2012 equivalent seen here). Now, eight years and surely some very steep legal bills later, VW has finally dropped its claim against Suzuki.
The General Court of the European Union stated, back in March of this year, that Suzuki's GTi registration could not be confused with VW's "Golf GTI." Volkswagen had appealed that ruling, though has now reportedly called off the dogs. In fact, Germany's Die Welt reports that the appeal has been dead for several weeks now.
This news comes amongst continued arbitration acrimony between the two automakers, all revolving around VW's forced divestiture of nearly 20-percent stake it purchased in Suzuki some two years ago.

Suzuki latest to admit to falsifying fuel economy tests

Suzuki is the latest automaker to be snagged in the broadening scandal of fuel economy falsification. Reuters reports that the head of the Japanese industrial giant admitted that it did not use the proper standards when testing its cars for fuel consumption. "The company apologizes for the fact that we did not follow rules set by the country," said CEO Osamu Suzuki (pictured bowing to reporters), as reported by Reuters. Over 2 million Suzuki vehicles are estimated to be affected. However Suzuki maintains that the company did not intentionally lie or mislead the public or government regulators about its vehicles' economy figures. Japan's transport ministry has ordered domestic automakers to resubmit those figures this week. Though Suzuki withdrew from the North American automobile market nearly four years ago, it remains the fourth largest in Japan (following Toyota, Nissan, and Honda) with particular sales strength in the Kei car segment. Like Honda and Yamaha, the company makes a variety of motorized products, including motorcycles, ATVs, and marine engines. The revelation follows hot on the heels of Mitsubishi's falsification, which broadened in scope from a few Kei cars to every vehicle it has sold in Japan stretching as far back as 1991. The controversy lead to Nissan taking control of a third of Mitsubishi's stock. Prior to that, and on the other side of the world, Volkswagen admitted to engineering its diesel vehicles to cheat emissions tests. Government regulators around the world have launched investigations into numerous other automakers to see how much farther the growing epidemic of falsifying environmental credentials can spread. Related Video: