California-Based ASMC Plans to Reorganize Business
American Suzuki Motor Corp. has announced a reorganization plan for itself, seeing its car business in the US has remained unprofitable, as per revelations of a recent report. The company says that it would retrieve the business soon down the road with its new plans.
The company cites as reasons for this step, the varied economic conditions, including market trends and the currency exchange rate. It is being said that to some extent, the strict U. S. environmental and safety regulations and the subsidiary's projected sales volume are also responsible.
The subsidiary of the Japanese automaker Suzuki Motor Corp. has also declared that it would from now on be concentrating on other businesses. Its website has specified that these businesses may comprise all-terrain vehicles, marine products businesses and motorcycles.
The reason is that other businesses seem to it comparatively able to remain profitable. Also, these are being hoped to bring an upsurge in its sales. The report says that the reorganization is being looked for under the U. S. Bankruptcy Code's Chapter 11. Since, the same is being believed to facilitate an automobile dealer sales' transition.
"When considering its long-term business plan, ASMC recognized that it will be unable to maintain profitability with respect to its automobile marketing business", the company said.
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