Suzuki to Close Spanish Motorcycle Factory

The digital ink is still wet on news of American Suzuki declaring bankruptcy and shutting down its car business to focus on powersports and marine products, and now there’s more bad news for the Japanese manufacturer.

Suzuki announced it will close its motorcycle factory in Gijón, Spain, in March, 2013, shutting the company’s sole European production plant. The factory has been producing motorcycles and scooters for Suzuki since 1984, with the manufacturer taking 100% ownership of the factory.

According to Spanish site Motoworld.es, the factory has been bleeding money, accumulating more than 30 million euros (US$38.4 million) in losses over the last four years as Spain’s economy as a whole also took a tumble.

The factory employs 200 workers and produces nine models for Europe and other markets: GZ 125, Maurader 250, Burgman 125, Burgman 200, UX 125, 150 Sixteen, DR 125 SM, GS500 and GS500F. Suzuki Motor Spain will continue to operate as an importer and distributor of Suzuki motorcycles for Spain.

“The hard impact that the global economic crisis is having on Suzuki’s activities, and in particular on its subsidiary Suzuki Motor Spain S.A.U., with a dramatic drop in sales in recent years has led to a gradual loss of competitiveness and substantial accumulated losses. This requires that Suzuki rethink its current business model in Spain,” reads a statement from Suzuki, translated to English.

[Source: Motoworld.es]

By Dennis Chung