With its Kizashi sedan, Suzuki promised "something good is coming." Slow sales, however, have prompted Suzuki to offer buyouts to its dealerships across the United States.

The Japanese automaker offered buyouts to 150 dealers, according to Automotive News. Since March, 50 dealers have accepted the buyout, trimming Suzuki's dealer network by just under 10 percent. Suzuki affirms that the move is not indicative of a forthcoming exit strategy.

"The dealers who have taken the offer were selling on average about two cars per month," said Suzuki marketing vice president Gene Brown. "The changes have left us in a better position. Dealer profitability is better, and the profitability of the company is better than last year."

Suzuki's buyout package included $50,000 for dealers with refurbished showrooms ($20,000 for those who chose not to renovate), as well as buyback of dealer stock.

"Franchises get hot and cold," said dealer John Busam. "The stuff nobody wants today, everybody wants tomorrow."

The move comes after disappointing sales figures from Suzuki's midsize Kizashi sedan. In the first seven months of 2010, Suzuki moved just 3002 Kizashis, and 9656 models overall. So far, Suzuki sales are down, year-over-year, by 48 percent. Plans to offer a hybrid Kizashi have been scrapped, but an alliance with Volkswagen may prove fruitful.

In December, Suzuki offered prospective customers $100 if they test-drove a Kizashi against either an Audi A4 or an Acura TSX -- and didn't buy a Kizashi.

What do you think? Is consolidation a good sign for Suzuki, or is it a foreboding prediction for its future?

Source: Automotive News (Subscription required)

Recently, we learned that Honda has dropped plans to advance clean diesel technology, and will instead focus its efforts on producing hybrids and increasing fuel efficiency.

Honda's announcement comes at a time when many manufacturers are flip-flopping on their decisions to offer alternatives to traditional, gas-powered vehicles. In the short term, this might mean an end to colorful TV ads. In the long term, though, will it hurt Honda's ability to compete?

We've seen automakers change their mind before. Diesel pioneers Volkswagen and Audi wavered on the adoption of hybrid technology, but recently introduced hybrid SUVs and luxury cars, and electric supercars. We were rooting for Honda to introduce the European Accord diesel in the Acura TSX, but the latest news might mean that's not likely. And Suzuki has even put plans for a Kizashi hybrid or V-6 on hold.

Today's Snap Judgment:
Is it a good idea for Honda to abandon diesel technology and focus on hybrids?

Let us know what you think in the comments section.

Source: Reuters

It's been a turbulent year for wagons, with BMW jumping out and Acura and Cadillac jumping in. Long-time wagon builder Volkswagen will be losing the Passat wagon when the Passat leaves our shores, but today we're hearing they could replace it with a CC Wagon.

While details surrounding Volkswagen product planning are muddy at best, the situation would appear to be as follows: Though a new Passat is expected at the Paris Motor Show, it won't come to America. We'll instead get the mysterious New Midsize Sedan, which won't have a wagon variant. That leaves the Jetta SportWagen as the only wagon from VW, or does it? Rumors out of Europe are now suggesting that a wagon version of the upscale Volkswagen CC could be in the works and could turn up in the U.S. Volkswagen's board will reportedly vote on such a vehicle in September.

This begs the question of whether or not VW should move ahead with such a plan in the U.S. As noted above, the wagon segment isn't for the faint of heart, and there's fresh competition now from Acura's TSX Sport Wagon and the Cadillac CTS Sport Wagon. Though not the highest-selling models in VW's lineup, the wagons have actually had a very strong year in 2010 with Jetta SportWagen sales up 72 percent and Passat Wagon sales up 13.5 percent. Still, SportWagen sales account for only one sixth of Jetta sales with 5554 sales this year and Wagon sales make up only a quarter of Passat sales with only 1018 sales so far in 2010. CC sales, meanwhile, are up 23 percent this year to 8290, outselling the Passat sedan and Wagon combined by 3000 units.

Were a CC Wagon built, it would stack up favorably in the segment. The Acura TSX Sport Wagon and Audi A4 Avant offer only four-cylinder engines, so Volkswagen has an opportunity to top both of them by pairing its narrow-angle V-6 with the new Wagon variant. Offering 4Motion all-wheel drive would give it a further leg up on the Audi, which sells about 4000 units per year on average. However, only a four-cylinder model could compete with Acura on price, as adding a V-6 and all-wheel drive launches the CC sedan past the A4 Avant and well into Cadillac CTS Sport Wagon territory, where it would be at a disadvantage to the Cadillac's more-powerful engines and rear- or all-wheel drive. A four-cylinder model would be right on-par with the competition, where it could struggle to out-luxury the Audi.

What do you think? Should Volkswagen bring a wagon version of the CC to America to replace the Passat Wagon? Or will it end up a slow-seller like the Passat Wagon? Tell us what you think in the comments below.

Source: AutoCar

No matter how much you think you want a new, Euro-style station wagon, there's not much demand for such vehicles in the U.S. Audi has long had the bestseller in the sub-segment, the A4 Avant. It typically accounts for 10 percent of A4 sales, or roughly 4,000 per year in the U.S., a number so small that its maker sells it here in one spec: 2.0-liter TFSI turbo four with six-speed automatic and paddle-shifters.inline_mediumwraptextright0028621309/features/auto_news/2010/112_1006_the_wagon_conundrum2011-acura-TSX-sport-wagon-rear-three-quarter.jpgtrue

The attractive Alfa Romeo 159 Sportwagon is derived from the recently introduced 159 sedan, and the overall length remains the same at 183.5 inches. To give a sense of size, that's roughly the same length as a Saab 9-3 SportCombi or an Acura TSX. The Sportwagon will ride on a control-arm front suspension and a multilink setup at the rear, and its power will come from one of six powerplants, including three gasoline engines that range in output from 160 hp to 260 hp and three turbo-diesels that will produce anywhere from 120 hp to 200 hp. Transmission options include a six-speed manual and a six-speed manu-matic, and 260-hp versions can be had with all-wheel drive.

The attractive Alfa Romeo 159 Sportwagon is derived from the recently introduced 159 sedan, and the overall length remains the same at 183.5 inches. To give a sense of size, that's roughly the same length as a Saab 9-3 SportCombi or an Acura TSX. The Sportwagon will ride on a control-arm front suspension and a multilink setup at the rear, and its power will come from one of six powerplants, including three gasoline engines that range in output from 160 hp to 260 hp and three turbo-diesels that will produce anywhere from 120 hp to 200 hp. Transmission options include a six-speed manual and a six-speed manu-matic, and 260-hp versions can be had with all-wheel drive.