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Loan Woes Close Hillsborough's Only Suzuki Car Dealers

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By MICHAEL SASSO | The Tampa Tribune

Published: January 28, 2009

TAMPA - With the recent closures of two Suzuki car dealerships, this low-price Japanese brand has disappeared from new car lots in Hillsborough County.

Since late October, two Suzuki dealers, Suzuki of Tampa Bay on Florida Avenue in Tampa and Brandon Suzuki on Adamo Drive, quietly have gone out of business. The owner of Suzuki of Tampa Bay also shut its sister dealership on Florida Avenue, Tampa Mitsubishi, at the same time.

The closures leave no new Suzuki automobile dealers in Hillsborough County. Pinellas County still has two dealers, Crown Suzuki in St. Petersburg and Fitzgerald Countryside Auto Mall in Clearwater, and Pasco County has one, Ed Morse Suzuki in Port Richey.

Behind the Tampa store's closure is tight bank financing, which is hurting car dealerships nationwide and may be hurting Suzuki dealers more than most.

Suzuki traditionally sells less expensive vehicles than its competitors; the company's Web site lists the price of an SX4 Sedan at $13,299. Many Suzuki customers required more expensive subprime loans to buy their new Suzukis, said Dennis Slater, chief financial officer for Suzuki of Tampa Bay's ownership group.

After the subprime loan crisis hit, lenders began requiring bigger down payments from Suzuki's customers, who often couldn't afford them, Slater said. Suzuki of Tampa Bay went from selling 100 Suzukis a month to selling in the low teens.

At the same time, lenders have eliminated or raised the price of financing they provide to dealerships.

Eventually, the company shut the Suzuki store and the adjacent Mitsubishi store so it could focus on its bigger operation, University Chevrolet on Florida Avenue, formerly Tom Moore Chevrolet, Slater said.

The owner of Brandon Suzuki, Ron Slivka, could not be reached for comment.

Nationwide, some other Suzuki dealers have had similar problems getting bank financing, and in December, Suzuki sent a letter to dealers notifying them that it was unable to find them wholesale financing.

Even with the problems, American Suzuki spokesman David Boldt said it still has 420 dealers in the United States, down from 450 dealers.

Tribune researcher Diane Grey contributed to this report. Reporter Michael Sasso can be reached at (813) 259-7865.

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