Suzuki Still Able to Offer 0% Financing Via Ally, Court Says
Per the U.S. Bankruptcy Court in Santa Ana, Calif. American Suzuki Motor Corp. will be allowed to continue offering 0% financing to car buyers. The promotion could help unload the Japanese automaker’s remaining inventories here in the States.
On Nov. 5, Suzuki announced that the Brea, Calif.-based ASMC would file for Chapter 11 bankruptcy protection, and the company would concentrate on its stronger sectors of motorcycles, ATVs, and watercrafts. Court records indicated the company had $233 million in assets vs. $346 million in liabilities.
Ally Financial, Suzuki’s primary lender, provides wholesale and retail financing for the automaker under the private label American Suzuki Financial Services. The court needed to grant permission for American Suzuki to continue paying Ally for subvented loans. During the month of November, Suzuki is offering 0% financing for 72 months for 2012 models; 2013 models are offered 0% financing for 48 months. 
ASMC stated in a filing that it has 220 U.S. dealers, but just 90, mostly in the Northeast region, moved “significant” volumes. According to the filing, 130 of those dealers sell less than five units per month, while others sold as few as one or two cars monthly. As of Nov. 1, Suzuki had roughly 5,500 units in its inventory, representing a 71-day supply, said the Automotive News Data Center.
American Suzuki has had no interruption in dealers accessing credit from ASFS following the bankruptcy filing, Ally spokeswoman Sue Mallino said.
