agent Entrepreneur logo
MenuMENU
SearchSEARCH

Suzuki Buys Out 50 Dealers

August 16, 2010
2 min to read


About 50 Suzuki dealers have accepted buyout offers from the company in the past five months as part of a plan to cut the brand's worst-performing stores, Automotive News reported.


Struggling American Suzuki Motor Corp. launched the voluntary program in March to encourage low-volume dealerships to close. The brand now has about 300 dealerships, says Gene Brown, the marketing vice president. That's down from 354 in March.

Ad Loading...


Suzuki says it aimed to trim the number of retail outlets to give survivors a better shot at profits through increased per-store sales. U.S. sales topped 100,000 in 2006 and 2007 but fell to 38,689 in 2009 and are off 48 percent so far this year.


Dealers have been hurting. John Voss, who took the buyout, calls his Suzuki store near Dayton, Ohio, "a nonentity."


Voss says he invested about $250,000 for improvements in his stand-alone store after acquiring the franchise in 2007. But for the past year, he says, he has been selling only four or five new Suzukis a month.


American Suzuki offered poor-performing stores a cash payment and pledged to buy back inventory, parts, special tools and signs from dealerships targeted by the program. Dealerships that participated in the "Suzuki Square" showroom renovation program launched in 2003 were offered $50,000. Stores that did not participate were offered $20,000, Suzuki spokesman Jeff Holland says.


The buyout offers were made to about 150 dealers. The program ended July 31, and Brown says Suzuki has no plans to trim its sales channel further.

Ad Loading...


"The dealers who have taken the offer were selling on average about two cars per month," Brown says. "The changes have left us in a better position. Dealer profitability is better, and the profitability of the company is better than last year."


Per-store sales, not regional coverage, dictated which dealers were selected, he says. In regions where all of Suzuki's dealerships performed poorly, all dealers were offered buyouts.


That was the case in the southwestern Ohio, where the brand had only three stores servicing Cincinnati and Dayton. Both Voss Suzuki and Dave Arbogast Suzuki in Troy, near Dayton, accepted the Suzuki offer. Arbogast remains a service-only point.


John Voss' Voss Auto Network includes Chevrolet, Honda, Toyota, BMW, Land Rover, Hyundai and other stores. He says his Suzuki store would be better used as a certified-used-vehicle dealership.


"It's a shame to let a building of that size sit there and do nothing," he says. "It was basically doing nothing."

More Industry

F&Iby Lauren LawrenceFebruary 27, 2026

Price Driving Insurance Churn

Over half of insurance holders ages 18 to 29 reported to be 'somewhat' likely to change providers in the next 90 days, according to CivicScience, which found that interest was lower among older age groups.

Read More →
Industryby Lauren LawrenceFebruary 26, 2026

AI Drives Dealer Website Traffic

Total visits to dealer websites from generative artificial intelligence platforms grew more than 15 times year-over-year, signaling a shift in how many consumers shop for cars online.

Read More →
Industryby Hannah MitchellFebruary 26, 2026

Automakers Tops in Fuel Economy

In the U.S., Honda has the most efficient gas-electrified combo lineup while Tesla beats all automakers in annual EPA ranking as brands built their alternative-fuel offerings.

Read More →
Ad Loading...
F&Iby Lauren LawrenceFebruary 25, 2026

Report Finds Year-End F&I Strength

Deal volume ebbed and flowed throughout 2025, but product performance remained steady, according to automotive technology and data intelligence solutions provider StoneEagle.

Read More →
Industryby Hannah MitchellFebruary 24, 2026

Overall Consumer Confidence Up

Americans’ view of present business conditions, the labor market and family finances, though, are still in the dumps, and if they plan to buy cars, many target used units.

Read More →
Auto Financeby Lauren LawrenceFebruary 23, 2026

Auto Loan Forecast Bucks Market Trend

Auto loan originations rose over 6% year-over-year in the third quarter of 2025, but TransUnion predicts a slight decline in auto loan growth this year, making it an outlier in the company's overall lending forecast.

Read More →
Ad Loading...
F&Iby Hannah MitchellFebruary 23, 2026

Some Auto Brands Cheaper to Insure

A new top 10 list ranks the least expensive for average full insurance coverage on a clean driving record and high driver credit scores.

Read More →
Industryby StaffFebruary 20, 2026

Learn to Manage the Mayhem at Agent Summit

Rob Mancuso – president of Mancuso Automotive – will present a Keynote at the 2026 event.

Read More →
Fixed Opsby Hannah MitchellFebruary 20, 2026

Auto Recalls Sank Last Year

2025 Sedgwick data indicate that the number of vehicles affected fell to its lowest point in more than a decade.

Read More →
Ad Loading...
Industryby Lauren LawrenceFebruary 19, 2026

Affordability Leads Top-Rated List

Edmunds’ editorial team tested 300-plus vehicles to help determine the Top Rated Awards for 2026, and one brand stood out with multiple rankings, including Best of the Best.

Read More →