American Suzuki Motor Corporation, the sole distributor of Suzuki automobiles in the US has announced that it's pulling out of the US car market and has filled for Chapter 11 bankruptcy.

Citing low sales volumes, limited number of models in its line-up, unfavorable foreign exchange rates, among others, Suzuki will cease to sell cars and trucks in the US market after stocks are depleted and instead will re-align their business solely on motorcycles, ATVs, and watercraft.

Suzuki will continue to provide after sales service and parts to affected owners and notes that it will continue to sell automobiles in other countries including its home market of Japan and even the Philippines.However, this move will cast doubts on the future of models such as the Kizashi sports sedan which is primarily developed for the North American market.

On a side note, Mitsubishi President Osamu Masuko has answered rumors that his company maybe next to exit the US market. In an interview with Automotive News, Mr. Masuko said, "We have no intention whatsoever of withdrawing from the US market."

This is despite the fact that Mitsubishi sales have gone down 29 percent year-on-year with sales of just 50,103 units as of October this year. Currently, they only have a 0.4 percent market share in the US which is down from 0.7 percent last year.

UPDATE: Mitsubishi Motors, to back up its claim to stay in the US market, has revealed plans to sell its all-new Mirage sub-compact hatchback to the US market. Along with the all-new Outlander, they plan to sell more than 100,000 units annually doubling their current sales figures.

Sources: Automotive News