Powersports Business has learned that American Suzuki Motor Corp. is in the process of reducing its U.S. dealer network by “100-200,” according to a source.
Currently with about 930 dealers, Suzuki’s dealer footprint is expected to drop by at least seven dealerships in one of its districts as it aims to reduce its network to 700 dealerships in the U.S. following Chapter 11 reorganization.
One dealer received a letter from Suzuki this week informing him that his franchise agreement would not be renewed, with a March 27 deadline to agree to terms that would provide him with a $10,000 termination fee. Suzuki would also buy its new motorcycles and ATVs from the dealership, in addition to parts and accessories.
“After [a significant number of] years of being a partner, and they treat their dealers like this,” one dealer told Powersports Business. “I thought Suzuki was a better company than that, but I guess not.”
Share you thoughts in the comments section below. Read a Nov. 30, 2012, Powersports Business story about Suzuki’s Chapter 11 filing here.