Isuzu Motors announced today that Mitsubishi Corp. has become its top shareholder after increasing its share of the automaker from 3.5 percent to 15.65 percent. Mitsubishi Corp, the huge conglomerate that also owns 13 percent of Mitsubishi Motors Corp, first scooped up a share in Isuzu when General Motors dropped back its stake in the company back in April, and this news came about after Mitsubishi decided to convert all the preferred share that it purchased back in 2005 into common stock. Mitsubishi is clearly looking to strengthen its ties with Isuzu and benefit from the automaker's truck business.
Mitsubishi is a huge company, and it's no suprise that it is looking to strengthen its truck portfolio. A major factor in Mitsubishi's success last year was the strong sales of its trucks in Thailand, believe it or not. It will be interesting to see how much Mitsubishi integrates Isuzu into its current product offerings, as in some markets the two are direct competitors. It will be also interesting to see what becomes of Mitsubishi's relationship with DaimlerChrysler, as its current midsize truck offering, the Raider, is based on the Dodge Dakota. And what of GM's midsize trucks, the Chevy Colorado and GMC Canyon, which share their identity with Isuzu versions that have different grilles and bigger warranties? Seems as old relationships unravel, new ones are forming quickly.
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Reader Comments (Page 1 of 1)
Glenn @ Oct 4th 2006 1:10PM
I kind of thought this would happen when I found out that Mitsubishi Motors' parent companies also owned part of Isuzu.
It just makes sense. Look for Isuzu to concentrate on trucks and SUVs while Mitsubishi becomes the sporty brand for cars and light cute-utes.
My next prediction; they'll fully merge, or collaborate at least (in the manner of Hyundai and Kia, with Kia 1/2 owned by Hyundai).
Merger of the small-4 @ Oct 4th 2006 1:20PM
I have been hammering this for a long time and finally things have begun to take shape.
Mitsubishi, Subaru, Isuzu and Suzuki brands should merge together and this could be a great way to save a lot of money, share the manufacturing and engineering resources.
It will give them financial muscle too.
They can cut costs on a lot of fronts such as purchasing of parts having common suppliers, sharing talent accross brands.
Mitsubishi: Sporty like BMW
Subaru: Traditional like Benz
isuzu: Truck specialist
Suzuki: mainstream and small cars.
Together they can form a giant which can avoid a takeover from outside and give them more competitive depth.
They can then more effectively deal with Hyundai/Kia, toyota and Nissan/Renault.
The other Bob @ Oct 4th 2006 1:22PM
...or they will completely go under like Studebaker/Packard and other half dead companies merging.
rwdmtparkingonly @ Oct 4th 2006 1:24PM
The Colorado is based on an Isuzu pickup design, but the Isuzus sold here are made by GM in the US at the Colorado/Canyon factory, probably because of the chicken tax (http://www.jalopnik.com/cars/news/the-free-trade-boys-are-clucking-repeal-the-chicken-tax-156838.php).
This is the international, Isuzu made version, which is distributed by GM/Holden in Australia:
http://www.isuzu.co.jp/world/product/dmax/index.html
and the US version:
http://www.isuzu.com/i370.jsp
Mitsubishi also has a pretty cool pickup, they say it doesn't fit the US market, but it's probably not worth importing because of the Chicken tax:
http://www.mitsubishi-motors.com.au/mitssite/jsp/pages/vehicles/vehicles.jsp?groupId=18
I think this has a lot more to do with heavy trucks. Mitsubishi want's to consolidate their heavy trucks with Isuzu just like how Volvo Heavy Trucks (not part of Ford) took over Renault and Mack.
JS @ Oct 4th 2006 1:27PM
Isnt this sorta like the blind leading the blind?
I mean both companies seem to be in shambles as of late and hanging onto life support. Hopefully the new Evo X will help revive Mistu as the spy shots make it look like an actually stylish sedan instead of that bubble top creation of past. Izuzu, on the other hand, makes a good diesel so hopefully they will tweak it a bit to make it a viable option for the US market and dominate the small truck market and maybe even industrial trucks like they seem to have a presence in now.
Ryan @ Oct 4th 2006 1:28PM
"3. ...or they will completely go under like Studebaker/Packard and other half dead companies merging."
-Is it half dead or half alive?! Never say die.
Merger of the small-4 @ Oct 4th 2006 1:34PM
Ryan
Well said! Thats the positive attitude our country was founded upon and the japanese need that too. More competition and never say die attitude!
Ryan @ Oct 4th 2006 1:39PM
"7. Ryan
Well said! Thats the positive attitude our country was founded upon and the japanese need that too. More competition and never say die attitude!"
Exactly! Keep on rockin' in the free market! More choice for the consumer the better.
Glenn @ Oct 4th 2006 1:47PM
I think Nissan, Renault, Mitsubishi, Suzuki and Isuzu would make a better combination - Subaru is already "snapped up" by Toyota and Toyota aren't GM - they ain't gonna sell out little Subie any time soon.
Nissan is fading, needs a new direction. That's why they're so desperate to merge with someone or collaborate. They're failing (again), slowly. Ghosn is desperate to tie-up with someone to better compete with Toyota. Mitsubishi are "survivors", Isuzu too, Suzuki is on a roll world-wide, and Suzuki own a portion of Daewoo (also part-owned by GM and SAIC, GM's China partner). Some US market Suzuki's are Daewoos.
Apparently, the Nissan-Renault-GM tie-up is "out" but if Nissan-Renault go with Ford, then a tie-up between Suzuki, Mitsubishi, Isuzu seems to make a lot of sense, as in full-scale merger.
Here's what I'd be doing.
Suzuki: Economy cars, hybrids (swallow your pride, guys, and license the Toyota Hybrid Synergy Drive), small cars, cute-utes, eventually expanding to family sized cars (the Daewoo built Verona was not a huge success; do it yourselves, guys, and base it on the Mitsubishi Galant with a Suzuki 2.3 engine or 2.7 V6?)
Mitsubishi: Sporty AND youth vehicles including the Evo, slightly sportier up-market sedans ("sportify" the Galant, guys), sporty cute-utes, bring in the "i" Kei car as an attention-getting niche car and expand to cover near-luxury rear-wheel-drive or all-wheel-drive cars, much as BMW and Audi brands moved up-market years ago
Isuzu: Trucks (including diesels), macho SUVs up to medium size, heavy trucks (avoid the 25% tariff and build pickups at Mitsubishi's Normal, Illinois plant; the all-new pickups can be unit-body, loosely based on the Mitsubishi Endeavor, just as the Honda pickup is unit-body and was loosely based on their minivan) and use a V6 Isuzu diesel (turned sideways)
Ryan @ Oct 4th 2006 2:32PM
I would like to confess that #6 , #7, and #8 were all written by myself.
I felt guilty and had to say it.
Ryan @ Oct 4th 2006 2:54PM
#10
LMAO
Oh brother,
I would have soooo given myself so much more props if I had written back to myself!
Erik @ Oct 4th 2006 3:58PM
Merger of the losers
Ryan @ Oct 4th 2006 5:39PM
Ok I must confess again.
#6 #7 #8 #10 and #11 were all me.
What can I say, I have a problem.
Bill Maher is an Idiot @ Oct 4th 2006 9:52PM
Will we be seeing an Isuzu Evo?
Koba @ Oct 5th 2006 12:20AM
Midsize pickup, diesel engine.
Build and they will come, don't, and they won't. Nuff said.
Mitsufan @ Oct 5th 2006 1:07AM
While I can appreciate all the creative ideas about Subaru, Isuzu and Mitsu collaborating, there is one thing no one seems to have noticed.
MITSUBISHI CORPORATION IS NOT MITSUBISHI MOTORS!!
Mitsubishi Corporation (MC) is a trading company, which means they sell anything for anybody. There is some cooperation (plus the 13% stake) between the two, but MC is just as happy to hawk Toyotas where it's more profitable.
Mitsubishi Motors' major shareholder is Mitsubishi Heavy Industries. The "relationship" with DaimlerChrysler (which was basically "being DC's b-tch") is thankfully over save for some technical collaboration.
Also, as Mitsubishi Motors no longer manufactures trucks (truck and bus division became Mitsubishi Fuso) it is unlikely that Isuzu will have much to contribute.
Subaru is owned by Fuji Heavy Industries, so collaboration is again unlikely here.