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suzuki cutting dealers (Merged Threads)

7K views 49 replies 22 participants last post by  nbsdave 
#1 ·
Saw this and found it interesting.


Suzuki begins cutting motorcycle, ATV dealers
Re-Post from Dealer News

Publish Date:

Mar 20, 2013



By Mary Slepicka
"BREA, Calif. - Suzuki will be culling its U.S. dealer network after its Chapter 11 reorganization is finalized later this month, Dealernews has learned.


Dealers this week began receiving letters from American Suzuki Motor Corp. (ASMC) notifying them whether their franchise would be picked up by Suzuki Motor America Inc., which is the name of the reorganized company and designated the "purchaser" in the Chapter 11 filing.


"ASMC is assuming certain dealer agreements and other contracts and assigning them to Purchaser, while the majority of ASMC's remaining contracts will be rejected," states the letter, which was obtained by Dealernews. Dealers whose contracts are not being renewed are being told that their franchise agreements will be rejected and they will no longer be authorized Suzuki dealers as of March 31.


Cancelled dealers have until March 27 to file an "Other Settling Creditor Claim" to receive $10,000 in compensation. Suzuki also stated it will repurchase cancelled dealers' new motorcycle and ATV inventory, plus parts and accessories.


Dealernews has contacted Suzuki for additional information and is awaiting a response
 
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#2 ·
This is interesting. I have no clue how it works, but why would they shut down dealers who can potentially move product? Or is it the fact that some dealers are NOT moving product and they are giving it to those who do? Also, does Suzuki have money invested in dealerships, or is it all on the dealers? Just curious how this works.
 
#3 ·
#4 ·
There will be dealers that simply won't or can't live up to their contractual agreements or standards that Suzuki expects. Such as dealers that won't stock hardly any Suzuki product but will stock other makes. Not having proper showrooms or sales staff that has proper training go into this. In other words there are some dealers that they just don't want having the Suzuki sign over their door. The $10,000 compensation is to cover signage and other capitol expense the dealer put up to be a Suzuki dealer in the first place. This type of agreement is pretty common in auto/cycle dealer buyouts.

Suzuki won't have money in these dealerships. That is illegal in most states. But, with a cutback in budget they will not have as many company reps in the field to handle all the dealers they have now. That will be a big factor in cutting the number of dealers.
 
#6 ·
There are lots of Suzuki powersports dealers in rural areas that carry limited portions of the Suzuki powersports line (ATV only or outboard motors only, for example).

I can't help but think this is aimed at those types of dealers more than at full line / motorcycle dealers, but only time will tell.

Rough times for American Suzuki for sure, though I was encouraged to see that Suzuki has announced a pretty strong contingency award program to support all types of motorcycle racing this season, up from the last few years. If anything that seems to indicate a reinvigorated dedication to 2-wheeled powersports in the US.

Suzuki Offering $4.8 Million In Race Contingency Awards In 2013

For the organization I'm involved with (CMRA :: Central Motorcycle Roadracing Association) they're providing $40k contingency for 2013, certainly welcome for Suzuki roadracers.
 
G
#16 ·
The statement that says Suzuki is "committed" to their Powersports division sounds like a statement from a modern-day politician........I laughed when I read it.
I think the term "Power Sport" sums it up.
They seem to imply that riding bikes is a sport of some kind and therefor not a legitimate business venture like automotive sales and service.
I may be way out in left field but I think they need to be a bit more deliberate and business like in their thinking.
Why waste the company resources on impractical (goofy) machines like the GSXR when the rest of the line up languishes???

Better get off this soap box. (too much coffee this morning)
 
#8 ·
Requiem for a Friend

Suzook is definitely struggling. They didn't have the financial depth to handle the recession like Honda and Kawaski. Those guys have very deep pockets, Suzuki's always been tiny compared to them.

I wasn't surprised they closed their auto dealers; the Kizashi was their "make or break" new model for the US. It's a terrific car, but they just didn't sell many. There's a huge dealership in my town, and I've never seen one on the road. Hundais and KIAs out the ass, but no Suzukis.

On bikes, when was the last time they updated the Gixxer? It used to be THE supersport, now they're a generation behind. No traction control, no ride modes, no ESA. Hell, Bazzaz developed a traction control system for Gixxer 1000's, if a small 3rd party company can do it and Suzuki can't, that says a lot.

The way they threw away the opportunity they had with the Vee to compete with the GS and establish themselves as a DS bike builder is tragic. It's hard to believe they had a big-displacement DS bike in 2001! Everybody else was playing catch-up with BMW, but Suzuki had a platform on the market. All they had to do was update it and market it. Instead they let it languish with minor fixes to the most glaring problems. And even now they still have known issues unaddressed like the clutch, the stator, the fueling.

I loved my Vee, it was a hell of a bike for the money, and I hope their 2014 Vee will be a big success, but frankly I doubt it. Instead of being 1/3 or 1/2 off the price of a GS, it's going to be about the same. Without the price differential they've got a tough sell against what are now the "established players" like KTM, BMW, and even Triumph.
 
#41 · (Edited)
Suzook is definitely struggling. They didn't have the financial depth to handle the recession like Honda and Kawaski. Those guys have very deep pockets, Suzuki's always been tiny compared to them.

I wasn't surprised they closed their auto dealers; the Kizashi was their "make or break" new model for the US. It's a terrific car, but they just didn't sell many. There's a huge dealership in my town, and I've never seen one on the road. Hundais and KIAs out the ass, but no Suzukis.

On bikes, when was the last time they updated the Gixxer? It used to be THE supersport, now they're a generation behind. No traction control, no ride modes, no ESA. Hell, Bazzaz developed a traction control system for Gixxer 1000's, if a small 3rd party company can do it and Suzuki can't, that says a lot.

The way they threw away the opportunity they had with the Vee to compete with the GS and establish themselves as a DS bike builder is tragic. It's hard to believe they had a big-displacement DS bike in 2001! Everybody else was playing catch-up with BMW, but Suzuki had a platform on the market. All they had to do was update it and market it. Instead they let it languish with minor fixes to the most glaring problems. And even now they still have known issues unaddressed like the clutch, the stator, the fueling.

I loved my Vee, it was a hell of a bike for the money, and I hope their 2014 Vee will be a big success, but frankly I doubt it. Instead of being 1/3 or 1/2 off the price of a GS, it's going to be about the same. Without the price differential they've got a tough sell against what are now the "established players" like KTM, BMW, and even Triumph.
Well thank you for nothing. All negative, but a little bit of praise. next time, how about you go post in your favorite bike forum? cuz u don't like this bike.

hee, hee, hee. or maybe you try to accept that we like our bikes.

or, perhaps, you might just consider, that we like our bikes???

everybody likes to complain about the bikes, yet, you are still here.

i cannot fathom why a non-owner would continue to post in an owners group?

silly me.
 
#9 ·
I believe this will strengthen Suzuki going forward. The agreement usually has dealerships to carry certain amount of stock at any given time. It is a shame for dealerships to loose a product line and possible business. I would like to see who is getting cut. Part of the reason I bought my new Vstrom is the vast dealership network, just in case there was a problem on a trip. It hardly seems fair to cut dealers who had to suffer with lack of new inventory for the past 3 years. Business like this is not for the faint of heart, as the economy improves and new and improved products will be introduced, Suzuki probably has a better chance to bounce back in a big way. They need to hire a big marketing firm. 30 to a hour long show of their lineup and so on.
 
#10 ·
We'll have to wait and see for sure which motorcycle dealers are actually effected. Greywolfs post tends to make me believe this might just effect the automobile division which is in trouble. But, there seems to be some confusion on that so we'll have to wait and see. One of the journalists could easily have mixed up the content thinking that the Suzuki release meant motorcycles too.
 
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#13 ·
I merged the threads. Now I wonder if this dealership announcement is newer than the one I found.
 
#15 ·
That certainly is different and specifically mentions motorcycles. Never mind.
 
#19 ·
PowaSchports

Is it unfair to call motorcycling in the US a "sport?" Or a "hobby?"

Maybe other states are different, but in FL, people buy bikes to ride on the weekends or to work on Friday when jeans are allowed. They almost always have a car that's their "real" transportation.

I really don't know the percentages, but I'll bet that less than 5% - 10% of motorcycles are purchased as primary transportation. Scooters on the other hand, are probably closer to 40% or 50%. The youngsters buy them because they can't afford a car yet.

What do you think, am I off base here?
 
#20 ·
Is it unfair to call motorcycling in the US a "sport?" Or a "hobby?"

Maybe other states are different, but in FL, people buy bikes to ride on the weekends or to work on Friday when jeans are allowed. They almost always have a car that's their "real" transportation.

I really don't know the percentages, but I'll bet that less than 5% - 10% of motorcycles are purchased as primary transportation. Scooters on the other hand, are probably closer to 40% or 50%. The youngsters buy them because they can't afford a car yet.

What do you think, am I off base here?



You hit the nail on the head. maybe 20% tops.
In Europe and Asia on the other hand it may be the exact opposite, 10% for fun and the rest for primary transportation.
 
#23 ·
Perhaps changing their "route to market"?

Top salesman (only one left) at my local Honda dealer suggested that you would buy their machines online with a few service points for warranty support and mntce dotted about the country. This was the day after he returned from the main UK bike show and the Honda sales persons special presentations on trade day. Could be all our local franchised dealers become used bike and kit shops with a workshop.

Why do we need near realtime service and support when most sales and use is leisure?

I hate all this business speak.
 
#24 ·
The late Kevin Ash wrote a column on how the post-recession market might be a struggle for Suzuki, who had built their business model on providing high-volume, low-cost models without developing much brand loyalty - or giving the dealer much profit margin to work with. He contrasted their market position with the European manufacturers and Honda and Yamaha, who had built much stronger brand followings.

Dealers who are not making money don't care very much about the brand, and can't invest in new facilities, staff, etc.

Getting rid of marginal dealers is the first smart thing I've heard Suzuki do in a long time.
 
#26 ·
Kevin Ash wrote plenty of sense. His articles in the UK press must have inspired many to take up motorcycling as a hobby. He will be missed.

Suzuki have had a few niche products as Joe S points out. Unfortunate their underlying strategy seems to be as follower and seldom the inovator. Too often a case of "we do that too but cheaper". Nothing wrong with their products for the money but it's not a good position in the market if ever the bikes from China and other emerging manufacturers start to cut the mustard. Anyone can copy a product shouting me too I'm cheaper. Sensible folk know those copies will not have the durability we are used to from Suzuki's or the original designers. Unfortunate for the less well informed who might bite at the cheap offering.
 
#25 ·
I've probably had more Suzuki products than any other brand, not by design, just worked out that way.
What I think they have been good at is finding a relatively untapped niche market and building a bike for it.
Witness the DR350, a very good mid displacement dual sport, one of the few.
Also the 650 VStrom, a decent low priced bike to enter the 'adventure' market.
They do it fairly frequently actually.
Where they suck at it is that they don't develop the market, they build the bike, let the aftermarket own the farkle market and then never really do much to advance the bike and update it.
The 650 Strom is a good example. They have every reason to own that segment but they struggle and end up discounting them, doing 0% financing, while BMW and Triumph sell every one of theirs they make.
It wouldn't have killed them to offer a second variant, an R model, with uprated suspension and brakes, maybe punched out to 700cc, some distinctive farkling like they did the so called 'adventure' version. It would have been a gamble because cheapskates would likely have resisted it but others might have thought it cool.
Their lack of vision is evident on my 2011, the rinky dink saddlebags they tried to charge a fortune for, same weak brakes and soggy suspension. So come 2012 they do what i consider a modestly warmed over version.
Its unfortunate, they make a good solid engine and their Vtwins are pretty charming engines, they just don't go far enough.
 
#32 ·
What I think they have been good at is finding a relatively untapped niche market and building a bike for it...Where they suck at it is that they don't develop the market, they build the bike, let the aftermarket own the farkle market and then never really do much to advance the bike and update it...Their lack of vision is evident on my 2011, the rinky dink saddlebags they tried to charge a fortune for, same weak brakes and soggy suspension. So come 2012 they do what i consider a modestly warmed over version.
Its unfortunate, they make a good solid engine and their Vtwins are pretty charming engines, they just don't go far enough.
My thoughts exactly!

I love my Wee (an '09), but a little work would have taken it from "good" to "great!" Many of us have said so numerous times here on this forum -- better brakes, better suspension and wire wheels for those of us who want a true ADV bike. BMW and KTM own the ADV market and the Super Tenere is no slouch either, but in my mind, the idea of a liter-sized "dirt bike" does not make sense. However, I don't want a DRz400, DR650, KLR650 or even a KTM 690 Enduro because I often ride long distances to get to the fun stuff. Consequently, I at least want a twin for comfort (vibes) on the highway. That leaves...the Wee-Strom and maybe the Triumph 800XC. Honestly, if the 800XC had been available when I bought my Wee, I might very well be a Triumph rider now.

I get so frustrated with Suzuki, because I see the potential in the Wee/Glee, but so far, they have yet to make it the bike it could be.
 
#27 ·
I am surprised by this statement the Vstrom original was a new incarnation of the do everything bike that vanished around 1980, unless you say BMW GS models were the leader, though I thought of them as an attempt at dirt worthiness.

I am an engineer so I might buy into the research and internet buy scenario. They will give up on the #1 segment, cruisers. Cruisers are an emotional buy by idiots that point, grunt, then see if they can afford the payments. No dealers will be no sales.

These are smart people and perhaps unlike our media and leaders are getting on the late great USA, and are establishing the 3rd world dealer network.
 
#29 ·
Lighten up people.

 
#33 ·
We just received this message at work today. I work for a mechanical warranty company.

"Richmond Hill, ON (March 26, 2013) - Suzuki Canada Inc. (“SCI”) is announcing today that it will realign its business operations to focus on the long-term growth of its Motorcycle, ATV & Marine Division in Canada and will begin the process of transitioning out of the automobile business in Canada. Earlier this year Suzuki Motor Corporation of Japan (“SMC”) confirmed the production and supply of 2014 model year automobiles to SCI, and this decision will remain in effect. Today’s announcement follows SMC’s recent decision that, after its 2014 model year, it will discontinue production of new automobiles for Canada.



Last November 5, 2012, American Suzuki Motor Corporation (“ASMC”) announced its decision to focus its operations on the long-term growth of its Motorcycle, ATV & Marine Divisions and discontinue new automobile sales in the continental U.S. Since then, SMC and SCI have been monitoring market conditions carefully and, after reviewing the long-term viability of automotive production for Canada, SMC concluded that it was no longer feasible for it to produce automobiles for distribution and sale in the Canadian market.



SCI remains firmly committed to its Motorcycle, ATV & Marine Division which is competitively positioned in Canada and will become the focus of SCI’s operations once the realignment is complete. SCI remains very proud of its high quality motorcycle, ATV and marine products and will continue to bring to the Canadian market more of the excellent products that its customers have come to know and expect.



An Orderly Transition Process to Best Serve Customers and Stakeholders



SCI has a long history of standing by its products, which it will carry on through and after its realignment process. All of SCI’s warranties will be honoured and SCI automobile parts and service will continue to be provided to customers without interruption through SCI’s warranty and service dealer network.



SCI will be working with its current automotive dealers to effect a smooth transition from new automobile sales to exclusively warranty and service operations. To best ensure an orderly transition, SCI will provide all of its automotive dealers with at least 12 months within which to make the transition. SCI will continue to import and distribute new automobiles during this transitional period to meet the continued demand of its dealers and customers.



SCI is not entering into court-supervised restructuring in Canada. SCI’s financial and contractual commitments will be honoured through and following the transition.



Media Contacts



Bill Porter, SVP, Automotive Sales & Marketing, Suzuki Canada Inc.

bporter@suzuki.ca, Tel: 905 763 5051"
 
#35 ·
Nbsdave (is that "No BS dave"?), I agree completely; with the exception of some of the the "R" production bikes out there, Suzuki is no different than other manufacturers in building to a price point and leaving it up to us to customize. After talking to my dealer, he called his distributor, who said Suzuki is getting out of the car business and using the corporate reorganization to clean house a bit and then concentrate on rebuilding its motorcycle business, including strengthening and expanding its dealer network. Hopefully all of this this will result in a reinvigorated Suzuki and more and better bikes for us.
 
#36 ·
Well dave seems like I've irritated you a bit.
Heres the deal. I dont believe for a second that they would need to raise prices anything like you suggest. If you're already building bags it doesnt cost anymore to build them well. On the 2012 they offered better bags that list for less at twisted throttle than suzuki wanted for the flimsy plastic ones they offered on my 2011.
It also needn't cost a fortune to offer better suspension. Not everything costs like ohlins. My 99 dr350 had much better fully adjustable forks than my 93 did yet the bikes cost nearly the same. Suzuki went to the parts bin and put them on. Cost at the manufacturing level? Minimal.
Punch the engine to 700cc? Some r and d, minimal, once itsdone that cnc machine doesnt care if its boring a 700cc jug or a 650.
I know the people with the 2012 think its a magic carpet compared to the earlier bike. Well, lets just let that one lie.
Raise the price of the bike for an r? If they could im sure they would but they know their bike is price sensitive. I dont think it would need to be so.
 
#37 ·
Well dave seems like I've irritated you a bit.




not irritated at all

I just can't grasp why people complain about the bike they bought and still own it.
If it's shortcomings cause you grief-move on to another brand. I see no need to keep your shorts in a wad.
For many, any bike works the way it came. If a few farkles are added it works for even more. If not, find a different ride.
Just my $.02
 
#38 ·
I dont believe I said anything caused me grief. I gave an appraisal of what I think the bike is and where I think they could go with it and what can be improved. I consider it acceptable for my uses or I wouldnt have it but im not going to ignore or gloss over what I see as areas that could be improved.
It may be a shock but consummers saying what they want to see is how things improve. Do you think the 2012 adventure version was just pulled out of someones butt? I would say it was the result of studying what people want.
Trust me, if a bike doesnt do what I want its gone. By the same token though I canalso tell you what I think triumph should have done with the 1050 tiger. Why? Because I dont think every bike I own is the greatest thing ever made.
 
#39 ·
UK numbers down

Called into my once thriving local Suzuki dealership to pick up some clutch parts I'm sending out to Canada. Still get them in a day at reasonable rates. So even though we have lost the local supply of new bikes we get some support.
The sad, sad thing was that their large sales floor, once full of new Suzuki and Yamaha models of all capacities, was packed with every category and brand of smaller bike thats ever been made in China and other emerging markets. How long before something larger turns up?
Felt a bit like the days when Triumph, BSA, Norton and the other British bike brands were slowly displaced by the early small machines from Japan some forty years ago.
And now for the really sad news. Total UK wide sales in the first quarter of 2013 for the entire Suzuki bike range was forty four units. Been a slightly longer winter than the norm but if thats followed by a poor spring and summer in addition to the dire financial state of the nation, and it might not be long before we see some major changes.

Suzuki have slashed the majority of their car range by 20% too.
 
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