If you were watching the high dollar advertisements that aired during this year’s Super Bowl game, you may have seen a popular ad for Suzuki’s new sport sedan featuring a car full of Huskies. This beloved ad was a last ditch effort on the part of Suzuki’s attempt to keep its American market for cars profitable.
Big Bucks, Big Debt
The cost of a short television ad doesn’t come cheap if it is aired during the annual Super Bowl. The cost for this spot cost Suzuki far more than expected, especially when it didn’t have the intended effect on sales. After struggling for years to make Suzuki a competitive brand in the U.S., company officials filed for Chapter 11 bankruptcy protection this past week hoping to restructure and move forward.
Based out of Brea, California Suzuki Motor Corp. is the sole distributor of Suzuki cars in America. With debt liabilities estimated between $100 and $500 million, the car maker is also listing somewhere between 1,000-5,000 creditors. The reason for the filing is to protect the remaining cash while debts to creditors are resolved. The company is confident that it can honor all car warranties and buyback agreements in the Chapter 11 proceeding, with the only down side being closing operations for American distribution. Instead, the company will be focusing on new sales for motorcycles, all-terrain vehicles and marine outboard engines here in the U.S.