GM cuts loose Isuzu
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Reports are that GM has sold its
7.8% stake in Isuzu Motors to a group of investment partners and strategic shareholders in the Japanese
manufacturer of passenger cars, commercial vehicles, and diesel engines. The deal will put about $300M in GM's pocket,
and will still allow business relationships between the two companies to continue. Those include the manufacturing of
light trucks in Asia, Africa, and the Middle East, diesel-engine efforts in Europe and the US, and the GMC-Isuzu
commercial truck venture (such as the GMC W-series that is produced in Janesville, WI).
At one time, GM held as much as 49% of Isuzu during the 35-year relationship between the two companies, but that share was reduced over the years due to a variety of financial maneuvers.
[Source: Marketwatch.com]
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Reader Comments (Page 1 of 1)
Austin 12:05AM (4/06/2008)
Most Isuzu failures have been backed by a General Motors Unleaded Engine. The rodeos contained a 3.1 or 3.2 v6 that matched the high failure rate blazer 3.2 v6. So General Motors has had a large helping hand in the demise of a Car Manufacturer here in the states so they can get what they want. GM entered that agreement with the idea to get what they wanted and screw Isuzu. Yes Isuzu's had there issues but no more than they partner GM has had with most of their vehicles. I do not blame Isuzu for wanting to get as far out of dealing with GM as they could but in the end it will have cost them there USA market due to BAD Business decisions with GM. Can not compare an Isuzu to a Yuga or Fiat. There still seems to be more Rodeos and Troopers on the Road here in Virginia then there are Blazers and Jimmys. So dont bash Isuzu for getting screwed in what was suspose to be a good business deal. Only actually good business deal they have had besides the DURAMAX partnership was there deal with HONDA.
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Michael Karesh 11:53AM (4/11/2006)
GM continues to own 60% of the joint venture that produces the diesel engines for its pickups. This is just its stake in Isuzu itself.
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Koba 5:07PM (4/11/2006)
Good, I'm glad to see Isuzu finally rid of GM. Now maybe Isuzu can begin to sell a line of GOOD cars and trucks here instead of GM's rebadged crap.
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Jeff Gilleran 5:47PM (4/11/2006)
Ive known this was coming for several years now.
Not really news.
Isuzu has wanted out of bed with GM for many years now and yes, I totally agree with you Koba.
With GM out of the picture, Isuzu can do what Its wanted to do in the US that it couldnt before.
Market in thier own manner on US soil as much as they want.
Now Isuzu has the veil lifted and the sun is coming out.
Go for it Isuzu!
:)
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Jason Boston 5:57PM (4/11/2006)
GM salvaged another company to get it's truck building expertise. Isuzu couldn't build world cars, and just was a drain. GM is free of this burden, and can still get good diesel engines from Isuzu, about all they could do. God, I remember their horrible cars and their worse ads. Maybe they'll do better in China. GM is finally getting its act together, but it's taken a long time. 35 years with this bad-imaged company was way too long. Yeah, we'll see big changes from Isuzu, right...don't hold your breath.
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Jeff Gilleran 6:41PM (4/11/2006)
Yeah, not everybody liked Isuzu's ads, but also remember that all that was back in the early and mid 80s that the "goofy" stuff was out and about.
Its been over 20 years since then and I doubt the same marketing people are running Isuzu's current operation.
Isuzu is doing well everywhere but in the US, (mostly due to GM but no more) so I think we will be in for a big suprise.
Isuzu has been making terrific profits for several years now and is continuing on that path of growth.
Isuzu is in and of a different world these days.
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Koba 6:47PM (4/11/2006)
Yeah Jason, their "horrible" cars outsold GM's crap the first year they were even on the market. Isuzu is a world class company that GM has been holding down as of late. Isuzu won't revolutionize the car market, but they will bring a good product, hopefully priced right. You're talking about the company that builds HALF of the worlds diesel engines, so my guess is that if we are to see a good diesel midsize truck or car, it will come from Isuzu.
Oh, and I forgot to mention, Isuzu is profittable as hell, damn shame GM can't say the same. GM just sold their paltry share because GM can't afford to hold onto anything, jobs, finance companies, plants, or shares in foreign companies.
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Tom Design 7:50PM (4/11/2006)
Funny, but you just don't see a lot, if any, used Isuzu's on the road. They sold a lot of these and they're not running around the streets in the cities I visit. GM helped them with cash, and Isuzu screwed the car thing up with bad designs and cheap, unreliable cars. I think this company should stick to industrial trucks and engines and manufacturing. The Koreans have stepped in, GM is topping quality charts, and it's not a marketplace for mediocre car companies anymore. Take a note from Fiat, Seat, Yugo, and other low quality economy manufacturers: The U.S. small car marketplace is for the best. There are very few people missing the Isuzu automobile.
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Jeff Gilleran 3:54AM (4/12/2006)
Tom, Did you realize its BECAUSE of Gm that Isuzu had issues with its cars and SUV's?
Sure, there was a companionship here, but when GM had controlling interest in Isuzu they took what worked (Diesels in particular) and destroyed everything else sold in the US.
Granted, Isuzu has made some cheaply made cars, but they also had great price points.
Also keep in mind that they werent "big" sellers even in the mid 80s when gas prices finally went back to "low" again.
Honda and Toyota had swept up in that era.
Isuzu has been undermined by GM ownership for sometime and its always been GMs ideals that damaged the Isuzu name and product.
Again, Good riddence to GM and hello to the New Isuzu.
By the way.. Isuzu has a new lineup of rigs coming in the next few years that should put them back on the map.
To keep things fair.. There arent many Hyundais from the 80s left, no Yugos or Fiats to name a few.
Hyundai is now one of the best manufactures now.
Isuzu has many excellent vehicles that arent even sold here because of GM.
Dont rule them out because of a colored distant past.
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Dave Gedge 12:56PM (4/12/2006)
I think the GM influence on Isuzu has been over - exaggerated since 2002 when they only controlled 7.9%
if Isuzu shares. I DO belive Isuzu does have good name
recognition on the car and light truck side. I've owned
3 Isuzus (Pick-up, Trooper & Axiom) and they've been great vehicles. BTW: Chicago Area roads are loaded with
Rodeos and Troopers and quite a few Axiom's as well.
I see quite a few GM/Isuzu Ascenders as well.
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Jeff Gilleran 6:42PM (4/12/2006)
Dave, yeah..more recently (since 2002).. GM has owned less of Isuzu, but only because Isuzu Profits have purchased back controlling intrest back to Isuzu.
Rumor has it that there was a type of "contract" silent or whatever, that didnt allow Isuzu to advertise like they did back in the mid 80s.
After 2002, you probably noticed that Isuzu, within 2 years, stopped selling the Rodeo and the Axiom?
Fast forward to 2006..
Isuzu has a new pickup, but it, again, is a partially rebadged Canyon/Colorado (Isuzu provides the chassis not the drivetrain) and calls thier own models the "I-280 and I-350".
Its still better than the old GM S Series based, "Hombre" which was a bomb.
The D-Max, sold in all other countries is 100% Isuzu.
The Ascender is a rebadged "Trailblazer" and not even Isuzu in content.
That contract ends in 2007 meaning this is in its final year.
GM has had a "push-pull" relationship with Isuzu, but I will tell you straight up, GM destroyed Isuzu's car image (removed them from the US) and severely cut down on Isuzu's sales of even Pickups, and before that end came.. GM found many ways to "cut corners" in quality of several components, Electrical and transmission gear heat treating to name a couple examples.
Not to mention killing off Isuzus image in the process.
The Axiom had an ad and so did the Rodeo based "Amigo" but thats it in the last 13 years since the demise of Isuzu's very successful storm.
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Tom Design 10:12AM (4/14/2006)
Ahh, yes. I see it so clearly now. GM flooding a company with cash is to blame for the economy cars that rusted out, the engines that burned oil, and the image of Joe Isuzu marketing sleeziness. GM did it all, right!
Like I said, Isuzu is a great manufacturing company, and failed in the small car market, as did GM and Ford and Fiat and Alpha and Yugo and others. Only the Japanese made good small cars, and now, the Japanese produce mid-sized compacts, and full sized Accords/Camrys/Maximas, light trucks and SUV's. Because the market is so tough, and dependent on low cost. So the Koreans are funding their auto industry and providing cash to keep price down to gain market share and flood the small car market. Then they'll lose to the Chinese, Indian car makers in a decade. Isuzu was out of step, and blew it, not GM. GM blew it on their own with small cars.
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Jeff Gilleran 6:38PM (4/16/2006)
Even with GM's influx of cash which dates back to 1971 Isuzu still didnt make a single decent car?
Thats not the case at all.
Burning oil was true for some models, but I know plenty of manufacturers that have burned oil from other japanese companies, (Honda, Toyota, Nissan) so thats not really an issue to compare with here.
The fact is, and my point, is that GM, in the last 25 years has stifled Isuzu in the US market.
Plain and simple.
Im NOT saying GM didnt provide cash for Isuzu, but they didnt help them as much as you think either.
Kinda think of GM as the Evil, but rich company that only cared about Isuzu's Industrial line of machinery.
I do agree to a point about Isuzu making some rather dull cars in the mid 80s, but they also had a couple of great cars with alot of promise that werent allowed to grow and be refined.
Dont think for a second that GM didnt mess with Isuzu's future with automaking in the US.
They had a sledgehammer rule over Isuzu in a growing market of smaller cars and I agree there has been alot of competition from other japanese companies, but to say GM didnt have a negative effect is incorrect.
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Lothe 9:37AM (7/06/2006)
It seems views differ from country to country. Isuzu has always had good solid memorable advertisements in South Africa and always had a very a good name. I cannot say anything negative about GM except that to me it's almost unreal how a company can lose so much money during only one year? I saw a lot of blaming in previous e-mails but nobody seems to wonder about the level of management of the top structure of GM? Dealerships are given targets of how many GM Vehicles should be sold each month but GM Plants are not able to provide those amount of Isuzu's? Don't even think of trying to sell more than the expected target!! It is almost as if they do not know HOW to expand in the market place. Opportunity and demand are there but the support and provision of vehicles from GM are not there.
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Japanese Car Exporters 5:16PM (8/13/2006)
Well, Isuzu started as shipbuilding company and it definitely needed Automotive partners such as GM to gain entry in the automotive market. Now it has established its own brand and image which is very powerful in many countries. So Isuzu can afford to stand on its own now.
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gixinme 1:15PM (10/20/2009)
Defects In Isuzu Engines
http://www.consumeraffairs.com/automotive/isuzu_timing_belt.html
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rs cars 5:44AM (10/05/2006)
Mitsubishi became top shareorder for Isuzu now.
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