(November 6, 2012) American Suzuki, whose U.S. demand plunged while the industry climbed back from recession, said it will end U.S. auto sales and filed for Chapter 11 bankruptcy protection.

The company, in a statement Monday , said it will continue its motorcycle and marine engine business units and will continue to honor auto customers' warranties. Japanese parent Suzuki Motor Corp. is not seeking protection from creditors, the company said.

In its filing, American Suzuki said it "has exhausted all available means to reduce the cost of operating the Automotive Division for it to operate profitably."

Among the listed challenges were "unfavorable foreign exchange rates, disproportionally high and increasing costs associated with meeting more stringent state and federal automotive regulatory requirements unique to the continental U.S. market, low sales volumes, a limited number of models in its line-up, and existing and potential litigation costs.''

The automaker joins Daihatsu, Isuzu and Daewoo as smaller Asian brands to drop out of the U.S. market while bigger rivals grew.

As recently as 2003, Suzuki touted a plan to lift U.S. sales above the 200,000 mark. It barely reached half that goal, topping 100,000 in 2006 and 2007. As industry demand sagged to 27-year lows in 2009, Suzuki volume fell to 38,695. Last year, 26,618 Suzukis were sold, and this year's volume through October is off 5 percent from a year earlier.

In its filing in the U.S. Bankruptcy Court for the Central District of California in Santa Ana, Suzuki listed assets of $100 million to $500 million and liabilities in the same range.

Source: Suzuki, Automotive News