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As part of an agreement between American Suzuki Motor Corp. and its more than 200 dealers, Marketplace Suzuki Inc. will transition from auto sales to warranty, service repair work and parts for Suzuki owners.
Marketplace Suzuki President Dennis Petrisak said despite the shift, the company expects to retain its 35 sales and service employees, due in part to the dealership’s anticipated arrival of a new franchise. Petrisak declined to say which manufacturer the Henrietta company will add, but said details should be complete in the next 30 days.
Marketplace Suzuki sold some 800 vehicles last year, according to the most recent Rochester Business Journal Auto Dealers list, posting $7.2 million in retail sales volume.
In November ASMC filed for Chapter 11 bankruptcy protection, saying it planned to discontinue auto sales in the U.S. and focus on growth of its motorcycle/ATV and marine businesses.
“Since the announcement came out sales have been up 25 percent,” Petrisak said, noting that rebates and incentives helped drive the increase.
Last week some 213 of ASMC’s 219 dealers agreed to the settlement terms. The agreement will compensate dealers and enable them to transition from sales to warranty and service repair work, ASMC said. The agreements are subject to court approval on Dec. 28.
“We are pleased to have reached agreements with all of our top 50 automotive dealers and that the total number of acceptances represents more than 98 percent of the total volume of automobile sales for ASMC in the continental U.S.,” said ASMC’s chief restructuring officer Freddie Reiss, in a statement.
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