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Tough market forces Suzuki to close dealerships in Troy, Centerville

The automaker says it’s hard to compete against bigger companies; a dealer says the car company’s marketing campaign wasn’t strong.

Chris Stewart/Staff Troy auto dealer Dave Arbogast stopped selling Suzukis Saturday, July 31. "Suzuki just didn't put the resources behind carving out the market," he said. American Suzuki also said Voss Suzuki of Centerville will no longer be a retailer. Staff photo by Chris Stewart

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By Thomas Gnau, Staff Writer Updated 2:56 PM Saturday, July 31, 2010

DAYTON — It’s not easy being an auto dealer these days. Consumers can be cautiously tight-fisted. Name recognition takes advertising and marketing prowess.

Auto industry observers make those points as Suzuki cuts its number of U.S. stores. After Saturday, July 31, both Dave Arbogast of Troy and Voss Suzuki of Centerville have ceased to be Suzuki retailers, said David Boldt, a spokesman for American Suzuki.

Arbogast will remain as a service-only point, Boldt said. For those still in the market to buy a new Suzuki, Busam Suzuki of Fairfield will continue to sell them, he said.

Boldt said Suzuki is simply acknowledging the “reality of the market.” The company needs to have retail representatives that are profitable, he said.

“The reality is, we’re not selling cars at a 100,000-car (a year) pace and we don’t need 400 dealers representing us,” Boldt said.

Suzuki’s current number of U.S. dealers is about 300, he said. The target is “to have an appropriate number” of dealers for Suzuki’s annual volume.

“Suzuki is historically a very conservative company financially,” Boldt said.

The automaker has offered unprofitable dealers incentives to stop selling the vehicles, including offers to buy back signs, unsold Suzukis and some of the dealers’ investment in the nameplate, Arbogast said last week.

Suzuki has had a tough time penetrating a crowded market, Arbogast said, whose Troy dealership also sells Buicks and GMCs, vans and RVs.

While he liked the vehicles, Arbogast said, “Suzuki just didn’t put the resources behind carving out the market.”

Managers for Voss Auto Network could not be reached for comment. Voss Suzuki operates at 90 Loop Road.

Busam Suzuki owner John Busam said Suzuki needs to find its place among the “big guys” who have more marketing muscle compared to Suzuki.

“I think the problem is brand awareness,” Busam said. “They’re a pretty conservative Japanese company, and if you look at their history, they have never, never lost money.”

He points to Hyundai, which is doing well these days. But he noted that wasn’t always the case.

“Before that, I could have bought 20 Hyundai stores for a thousand bucks,” Busam said.

His family has been selling vehicles since 1912 in Cincinnati, Busam said, adding that Henry Ford signed a contract with his grandfather, Joe Busam.

American Suzuki said earlier this month year-to-date sales fell 48 percent to 11,459 vehicles from the same period last year.

Contact this reporter  at (937) 225-2390 or  tgnau@DaytonDailyNews.com.

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