American Suzuki Trial a success story
|   Monday, November 12, 2012
The legal state law allows the dealers to send back to the manufacturer the 4,000 Suzuki cars which are standing open and are not sold yet.
After having tried in the court the American Suzuki, was legally permitted by the under the bankruptcy Protection, to cancel its dealership of the cars and replace it with the deals of motor bikes and the sale of boats.

Suzuki Motor Corp. offered to pay the dealers their amounts within no more than 10 days to avoid facing long term trials in the court, provided that they withdraw from their right with mutual understanding.


The company is planning to facilitate the dealers by offering them to work with them as Suzuki service outlets. This will include with the additional work warranty for the Suzuki dealers.

Richard Pachulski, giving his view point in the court said that some the state laws favors the dealers when they are asked, by the manufacturer, to cancel the dealership by force.

The company attorny James Stang stated on Nov, 5th,"since the sales in the America reduced to less that 5 cars a month by 96 percent of the dealers therefore the company was left with no other option but to show it self as bankcrupt." This step was taken to reduce the losses of the company to the minimum.

Giving their verdict in the court, the Suzuki company representative stated that the company is going to re-establish itself in the sales of motor bikes and the boats.

The court legally gave the indication to the company to borrow the money but the final approval will l be made in the next session of the court. The estimated cost the company will be borrowing will be round about $100 million. The court didn't issue any written verdict over the cancellation of the dealership.

Clarkson commenting on the dealership cancellation said that it doesn't need any legal order if both the dealers and the company come to any mutual decision. He further said that such issues can be resolved through mutual understanding rather that getting involved into the court trials.

According to the court orders the company is bound to pay the dealers half of their amount if the agrees to cancel the dealership. These payments according to the court agreement must be paid to the concerned within 10 days of the cancellation of the dealership. The remaining amounts pertaining to the cancellation of the contract can be collected by the dealers after fulfilling the legal requirements through bankruptcy precessing.One of the representatives of the company revealed that the company may have to pay the sum of $50 million to the dealers.

Eric J. Snyder representative of the dealers, was of the view that this offer from the company may not be in the best interest of their clients and they may not agree to the offer. He said that the dealers reserve the right to send back as many cars as left unsold, back to the company. It was viewed that both the company and the dealers must come to a point to get the issues resolved.
PHOTO GALLERY
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