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Suzuki, Automotive News
Nov 05, 2012 (7:23 pm)
Official Suzuki announcement and FAQ links.
Might be tough getting parts and service even under warranty if your nearby dealers disappear.
#181 of 204 Re: wind down news [steve_]
Nov 06, 2012 (5:21 am)
I imagine that, given the low sales volumes for Suzukis, that most Suzuki dealerships also sell other brands. In that case most dealerships will survive and continue to carry Suzuki parts, and provide service. That's what happened with Isuzu, for example.
The best deals for Suzukis will likely be, in the coming months, on near-new and 1-3 year old ones.
#182 of 204 This is almost as surprising as when Clay Aiken came out of the closet!!!
Nov 06, 2012 (6:07 am)
You really can't blame it on the product. The Kizashi is still an outstanding vehicle even after three years on the market. The SX4 is far from the worst in class. The Grand Vitara is a handsome, clean design and the 4WD is actually off-road capable. And the Equator is arguably a better looking version of the Nissan Frontier. I'd buy any one of these over anything Mitsubishi has to offer!
They did absolutely NO marketing and I've seen lemonade stands with a better business plans. Dealers were given little to no support. Every Suzuki dealership that I've ever seen (at least in the South) make most 'Buy Here, Pay Here' used lots look classy in comparison! And selling rebadged Daewoos may have increased sales for a few years, but it also diminished their already non-existent reputation...
I don't see how ANY dealers have survived to this point. To make a profit with their sales volume, you need to be making Bentleys or Aston Martins.
I'm anxious to see just how low prices will go to clear out the remaining inventory. It probably won't fall to Saab levels (as much as 50% off MSRP), but they had no warranty coverage and (toward the end) had to be sold as used even with 10 miles on the clock!
As much as I like the Kizashi, I doubt I'd buy one even at 40% off or better. Long-term parts availability and repairs after warranty coverage expired would worry me, not to mention how hard it would be to sell down the road a few years!?!?
The Equator is a pretty safe bet since it shares so much in common with the Nissan Frontier. But it would need some hefty discounting because right now it's priced several thousand bucks higher than a comparable Frontier!
It's been a painfully slow death, so RIP Suzuki NA! Now Mitsubishi needs to do the right thing and go away!
#183 of 204 Re: This is almost as surprising as when Clay Aiken came out of the closet!!! [igozoomzoom]
by Stever@Edmunds HOST
Nov 06, 2012 (6:12 am)
To make a profit with their sales volume, you need to be making Bentleys or Aston Martins.
Or at least BMWs.
Good point about the co-sharing franchises Hpmctorque.
#184 of 204 Re: counting down the months [nippononly]
Nov 06, 2012 (6:28 am)
With no new product in the works anywhere, and especially in the 3-year timeframe, I would suspect that Suzuki will exit the U.S. by 2015 if not well before. I'm not one to make bold predictions like that, but it just seems so clear in this case. Perhaps if I am still around the Town Hall in 3 years' time, I will check in here on whether my forecast came true....
Geez, as sure as I was when I wrote this that Suzuki wasn't going to make it in the U.S., even I didn't think it would happen in a mere two months.....
The only Suzuki dealer I have visited this year still had unsold new cars from three model years ago on the lot. Doesn't take a genius to see there was no way for Suzuki to make it.
With Suzuki folding up its tent, the bell tolls for Mitsubishi USA....without a complete rethink of the U.S. product line and a major investment in the dealer network, Mitsu will be the next to go. I would say five years or less will tell that story, no way they make it past 2020 without completely changing everything about the way they do business here.
#185 of 204 Re: counting down the months [nippononly]
by Stever@Edmunds HOST
Nov 06, 2012 (6:40 am)
You predict 5 years?
Hm, the 3 year prediction for Zuke took 2 months.
So by that reckoning, Mitsu has maybe until April 15 to follow suit.
#186 of 204 Re: counting down the months [steve_]
Nov 06, 2012 (6:42 am)
April 15 sounds about right.
#187 of 204 Re: wind down news [hpmctorque]
Nov 06, 2012 (6:46 am)
I too was considering a Kizashi at one time, but the lack of dealers and no manual models to be had put me off. With Saab, at least there is a decent junkyard stock to draw from if you have to. Imagine trying to get parts for your CVT 5+ years from now.
#188 of 204 Re: wind down news [des5]
by Stever@Edmunds HOST
Nov 06, 2012 (7:25 am)
Maybe, but Daewoo owners still seem to be able to find most parts they need.
#189 of 204 Another potential problem with buying an "orphan" brand vehicle
Nov 06, 2012 (8:16 am)
Something that no one thinks about when buying an car from an orphaned brand is INSURANCE! If I wasn't an insurance agent, I wouldn't give it a second thought!
I'm an independent agent and I represent seven companies that offer Personal Auto coverage. Two of them have increased premiums substantially for Comp & Collision on all Saab vehicles...as in 200% or more in some cases! All of our companies have increased their rates somewhat on Saabs, but only 25-30% on average, so far...the same is true for most Saturn and Pontiac models.
Some companies also stopped offering GAP coverage six months before the official 'end'. GAP basically covers the difference when a car depreciates faster than the loan balance decreases. When it was fairly obvious that the end was near for Saab, it became impossible to predict their rate of depreciation.
I'm sure the same will happen to Suzukis, to some extent. On the bright side, at least it only affects the Comp, Collision and Uninsured Motorist rates; Liability and Medical coverage remains the same.
I have insured a few 2010-2011 Saabs in the last six months or so. The one that stands out in my mind as being BRUTAL was on a 2011 Saab 9-5 (new design). It had a $48k sticker price but the guy had only paid $23k for it. But when replaced his prior vehicle with the Saab 9-5 on his existing policy, it was going to cost $4920 per year to cover it! Just for comparison, I replaced the 2011 Saab 9-5 with a 2011 Volvo S80- only $2100 per year ($2800+ less than the Saab)! We finally got it down to about $3400 per year, but had to increase his deductibles to $2,500 to do that! That is the only time I've ever issued a policy with a deductible over $1,000....that really sucked for him and I felt really horrible for him. He had already withdrawn $20k from an investment account to buy it because he couldn't find a bank that would even loan on a Saab!
Moral of the story- before you buy a Suzuki, call your insurance agent for a quick quote!