In a recent announcement, hinting at its pull out from the US automobile market, American Suzuki Motor said that it intends filing Chapter 11 bankruptcy; a move which will not have any bearing on the company's Japanese counterpart.

About the bankruptcy-filing decision for American Suzuki, Japan-based Suzuki Motor Corp said on Tuesday that it would use a Chapter 11 bankruptcy filing by its US subsidiary in a California federal court, for shuttering down the company's US auto business.

Though American Suzuki refrained from disclosing its imminent plans in detail, it did mention that it will focus more of its attention on selling all-terrain vehicles (ATVs) and motorcycles, instead of cars.

Despite the fact that its decision to pull out of the US market is apparently based on reasons such as poor exchange rates and low sales, American Suzuki said in its statement that it will continue to honor existing warranties.

Noting that some circumstances had prompted the company to go in for an inevitable action like bankruptcy filing, American Suzuki said that "the decision to discontinue new automobile sales in the U. S. was difficult to make."

The company further said in its statement that it "intends to work within its current U. S. automotive dealer network to help structure a smooth transition from new automobile sales to exclusively parts and service operations, or, in some instances, an orderly wind-down of dealership operations."