American Suzuki Motor Corporation (“ASMC”) Provides Update on Automotive Dealer Agreements

  American Suzuki Motor Corporation (“ASMC”) Provides Update on Automotive
  Dealer Agreements

 Dealers representing all of the top 50 and more than 98% of the total volume
 of ASMC’s continental U.S. automobile sales agree to transition to parts and
                             services operations

Business Wire

BREA, Calif. -- December 04, 2012

American Suzuki Motor Corporation (“ASMC” or “the Company”) today announced
that, as of the early return deadline of November 30, 2012, 213 of the 219
Automotive dealers have agreed to the terms of ASMC’s Dealer Settlement
Agreements as part of ASMC’s previously-announced restructuring and
realignment. These agreements are intended to compensate dealers and enable
them to transition uninterrupted from automobile sales to provide critical
warranty and service repair work and parts for hundreds of thousands of Suzuki
automobile owners. The final return deadline for ASMC Dealer Settlement
Agreements, all of which are subject to Bankruptcy Court approval, is December
28, 2012.

“We are pleased to have reached agreements with all of our top 50 Automotive
dealers and that the total number of acceptances represents more than 98% of
the total volume of automobile sales for ASMC in the continental U.S.,” said
M. Freddie Reiss, ASMC’s Chief Restructuring Officer. “We greatly value our
relationship with our customers, and it is very important to us that they
continue to receive the necessary support from ASMC during and after our
restructuring. As these agreements demonstrate, we are working within our
current U.S. Automotive dealer network to help structure a smooth transition
from new automobile sales to exclusively parts and service operations. Based
on dealer acceptances, we continue to believe our restructuring and
realignment will be completed in a timely manner.”

As previously announced, ASMC intends to market and sell its remaining U.S.
automobile inventory through its automotive dealer network, many of whom have
expressed interest in continuing to order and receive shipments of Suzuki
automobiles as long as they remain available. ASMC continues to provide
marketing and incentives to help promote the continued sale of the automobiles
remaining in dealer inventory and the pipeline. All automobile warranties will
continue to be fully honored, in accordance with their terms, and parts and
service will continue to be provided to consumers through ASMC’s parts and
service dealer network.

ASMC announced on November 5, 2012, that it plans to realign its business to
focus on the long-term growth of its Motorcycles/ATV and Marine divisions and
to wind down and discontinue new automobile sales in the continental U.S.,
following a thorough review of its current position and future opportunities
in the U.S. automotive market. ASMC determined that the best path to achieve
this realignment in an efficient and orderly manner was to restructure its
operations under chapter 11. The case was filed in the United States
Bankruptcy Court, Central District of California in Santa Ana.

Additional information regarding ASMC’s business realignment can be found at
the Company’s website, www.suzuki.com or via an information hotline at
1-877-465-4819.

Contact:

MEDIA CONTACTS:
FTI Consulting
Rachel Rosenblatt
917-626-9683
rachel.rosenblatt@fticonsulting.com
or
FTI Consulting
Kal Goldberg
917-741-1013
kal.goldberg@fticonsulting.com
or
Suzuki.Media@suz.com
 
Press spacebar to pause and continue. Press esc to stop.