Suzuki Bankruptcy: What You Need to Know
Suzuki filed for bankruptcy Monday, officially eliminating its automotive arm in the U.S.
That leaves current and potential owners with a lot of questions. We answer the most significant ones below, but if you have a question, please ask it in the comments below or email us at firstname.lastname@example.org.
Will my warranty still be honored?
Yes, Suzuki says all currently valid warranties will be honored. If you buy a new Suzuki today going forward, the existing new-car warranty will be included.
Many may remember that when Saab was finally liquidated, it stopped honoring warranties for cars bought during the period after its GM ownership when a Swedish firm was operating it. Suzuki’s bankruptcy will allow for continued warranty service in line with how GM still services the Saabs sold under its ownership.
Where do I take my car for service?
There are currently 220 Suzuki dealers nationwide according to the automaker. There were 246 Suzuki dealers nationwide as of January 2012, according to Automotive News, and Suzuki says they will transition to delivering parts and service only from here on out. Seventy-seven of the 246 figure were listed ase combination dealers that sell other brands, so owners should expect them to remain in place for the foreseeable future. The remaining standalone dealers are less likely to stay in business after the bankruptcy unless they also sell Suzuki motorcycles and ATVs, which will continue after car sales cease.
Will parts be hard to find?
If past bankrupt automakers are any indication, parts will be available but could be harder to track down. For example: A repair may have to wait on parts being delivered as opposed to a healthy brand’s vehicle having them in stock.
Will this lower my resale value?
Yes, we have seen bankruptcies directly impact resale value of existing cars, most recently with Saab. We did a search of Cars.com’s extensive used-car inventory for Saab’s most popular model, the 9-3, for the past three model years it was produced, 2009-2011. The listed price for the Saabs in our inventory are on average 5% lower than the Volvo S60, which averages twice as many miles, and nearly 20% lower than the Acura TL, with nearly 80% more miles on average.
Should I buy a new Suzuki?
If you fully understand that a Suzuki will have a lower resale value and that parts and service will be harder to track down, then yes, you should feel comfortable with Suzuki products. Check out our rundown of how the four existing models stack up here.