Bankrupt Suzuki ordering 2,500 more cars for U.S. dealersby Drew Johnson
Suzukis are selling like hot cakes.
Despite previously announced plans to exit the U.S. market, sales are booming at Suzuki. The bankrupt automaker recently won approval of a $100 million debtor-in-possession financing to fund its chapter 11 filing, with half of that amount already allocated to buying more vehicles from Japan for the U.S. market.
Suzuki announced on Friday that it will use $50 million of its bankruptcy financing for the purchase of inventory from Suzuki Motor Corporation, American Suzuki Motor Corporation's parent company. Suzuki says the $50 million will allow it to buy about 2,500 additional vehicles.
Although bankruptcies tend to scare off customers, the exact opposite has held true for Suzuki. Buyers in search of bargains have flocked to Suzuki dealers in the wake of the automaker's bankruptcy announcement, resulting in November sales of 2,200 units, an increase of 22 percent over the same month a year earlier.
Suzuki hasn't revealed how many vehicles it currently has in inventory, but the final shipment of cars should keep the automaker hanging around for at least another month or two.
In order to clear that remaining inventory, Suzuki is offering 0 percent financing for up to 72 months, with dealers tacking on as much as $3,000 in additional rebates.