American Suzuki raised some eyebrows after news broke yesterday the company was cancelling franchise agreements with numerous dealerships in the U.S. The company was already under close scrutiny after making the bold decision to quit selling cars to focus on powersports when it filed for Chapter 11 in November. Reducing its dealer network appears to go against that idea, at least on the surface.

Facing some backlash for the decision to cut dealerships, American Suzuki has spoken up, explaining the decision. Larry Vandiver, American Suzuki sales and marketing senior director explains the actual number of dealerships being cut loose is 98, not the the 100-200 dealerships initially reported by PowersportsBusiness.

“We’re not cutting 200 dealers. Approximately 90 percent of our dealers received a letter that their contract has been assumed by ASMC,” Vandiver tells PowersportsBusiness. “It’s all part of our restructuring under Chapter 11 to secure long-term growth of Suzuki.” Continue Reading »

When American Suzuki announced it was shutting down its automobile business, the company said it intended to focus on its powersports operations. It comes as a surprise then to some dealers that Suzuki is not renewing all of its dealership agreements.

According to DealerNews, dealerships received letters this week from American Suzuki notifying them whether their franchise agreements would be renewed with the newly formed Suzuki Motor America. Some dealerships received letters telling them their agreements would not be picked up and they would no longer be authorized Suzuki dealers as of March 31.

“ASMC is assuming certain dealer agreements and other contracts and assigning them to Purchaser, while the majority of ASMC’s remaining contracts will be rejected,” reads a copy of the letter obtained by DealerNews. Continue Reading »

The National Highway Traffic Safety Administration has levied a $125,000 fine against Southern Honda Powersports following an investigation into allegations the Chattanooga, Tenn., dealership sold unrepaired recalled models. Southern Honda Powersports bills itself as the “World’s largest Honda powersports dealer”.

Federal laws require dealers to stop selling models that are recalled until the defect or noncompliance issue has been remedied. A NHTSA investigation concluded Southern Honda Powersports had sold and delivered 329 recalled motorcycles between 2007 and 2012 without inspecting or repairing any defects.

Southern Honda Powersports denies the allegations, which were sparked allegations raised last October. The dealership reached a settlement with NHTSA to pay a sum of $125,000 to the U.S. Treasury in installments of $25,000 a year until 2017. Under the terms of the agreement, Southern Honda Powersports admits to no liability or culpability. Without this agreement, the dealership faced a potential fine of up to $6,000 per vehicle, which could have amounted to $1,974,000. Continue Reading »

Zero Motorcycles announced a new network of eight dealerships as the electric motorcycle company begins the transition from an online-based sales model to a traditional showroom sales model.

Until now, Zero conducts its sales over the Internet with the help of a system of Independent Representatives around the country who use a handful of demo models instead of actual inventory to showcase the brand.

As both demand and production have increased, Zero is ready to adopt a new dealer-based model. The company says it will eventually stop selling directly to customers except where reaching a dealer is not feasible.

Continue Reading »