US: Suzuki reaches settlement with dealers to phase out new car sales

Alabama Live - Bankrupt American Suzuki Motor Corp. says 213 of its dealers have accepted a settlement agreement under which they will discontinue new car sales.

The dealers, which include Classic Suzuki of Birmingham, will provide parts, as well as warranty and service repair work for Suzuki automobiles.

All of Suzuki's dealers in Alabama, including those in Huntsville, Muscle Shoals and Prattville, have accepted the agreement, according to the company.

American Suzuki filed for Chapter 11 bankruptcy protection in early November, citing plans to focus on its motorcycle, ATV and marine businesses. As of Nov. 30, 213 of the company's 219 dealers had agreed to the terms.

Dealers who agreed to the terms will be paid half of what they are owed now and placed ahead of other creditors to receive the rest as the bankruptcy process proceeds.