It must be pretty hard to unload an unwanted truck business these days. Just ask General Motors, which has attempted to sell its medium-duty truck operations first to Navistar and then Isuzu. Both heavy-duty diesel makers have passed on the offer. Isuzu had been rumored as a possible buyer for the unit after Navistar let the non-binding agreement pass by unsigned. Now, Isuzu President Susumu Hosoi tells Reuters, "There will be no such acquisition happening" from his company either, suggesting that the market for heavy-duty trucks has not yet hit the bottom.
GM and Isuzu still have dealings together as the two companies jointly develop and build the Duramax engines that power the General's most powerful full-size trucks, SUVs and vans. This cooperation is expected to continue on as it has with neither Isuzu or GM buying out the other to gain full control of the operations.
Reports are coming in that the General is considering selling its medium truck operations to Isuzu. This news is totally unconfirmed by both parties, though Isuzu says it would be more than willing to listen if GM felt the desire to talk.
All of this comes shortly after Navistar chose not to follow through on its non-binding agreement to purchase the commercial truck unit from General Motors after seeing what's been happening with the U.S. economy and gas prices. After that deal went sour, GM said that it would continue looking for options, so this particular piece of the rumormill pie is anything but surprising. We contacted GM to see if the automaker had anything to say regarding the hubbub, and, as expected, it's staying tight-lipped for the time being. An Isuzu tie-up makes some sense, as the two truck makers have had dealings together in the past, most notably in the design of GM's current mid-sized trucks, the Chevy Colorado and GMC Canyon.
Aggressive dealer cash incentives ranging from $4,000 to $8,000 on vehicles has helped Isuzu record its first quarterly sales increase in nearly eight years. The news of 2,007 new units out the door follows the not-so-shocking report earlier this year that Isuzu is abandoning the U.S. market -- ergo the fire sale.
There are 201 Isuzu dealers in the U.S. right now, and all are tasked with clearing the balance of their inventory by Jan. 31, 2009. If you've got the hots for an Ascender SUV or an i-290 / i-370 pickup, now would be a great time to take a stroll over to your Isuzu dealer (and don't forget to let them know Autoblog told you about the rebates).
Posted Jan 30th 2008 3:35PM by John Neff Filed under: Isuzu
Isuzu has officially announced that it's leaving the U.S. market and discontinuing sales of its i-Series pickup and Ascender SUV. Both vehicles are produced via a joint venture with General Motors, the i-Series being based on the Chevy Colorado/GMC Canyon pickups and the Ascender being a rebadged version of the Chevy Trailblazer. Reuters reports that it will cost Isuzu some $37 million to bug out, mostly in dealer buyouts and other move-related costs. Though the Japanese automaker will not be selling vehicles in the States, it will continue to provide parts for service. Its reason for leaving is basically that GM has no plans to replace the Colorado/Canyon and Trailblazer with models that Isuzu could rebadge, and the automaker has no plans to develop its own new models for North America.
Isuzu's sales have been extremely weak in the U.S. these past few years. Last year it sold just 7,906 units, down from 15,751 units in 2006. We can't say that we're crushed that Isuzu is leaving, although we do remember a time when Isuzu sold more than just trucks, back when the brand's image was shaped by a guy named Isuzu Joe (see commercial after jump). Remember the Impulse, Lotus-tuned Stylus (the last car sold by Isuzu in the U.S. from 1990 - 1993, and one we wouldn't mind owning ourselves), the wild VehiCROSS and sharply styled Axiom? Yes, we can remember better times for Isuzu in the U.S., but recent bad times have led the automaker to this decision. Farewell, Isuzu! Read Isuzu's official press release after the jump.
It was the best of times, it was the worst of times – it was 2007. Topping the sales figures for the year that almost was are mainly servile vehicles, while the more ostentatious, less useful cars round out the bottom-feeder roster. Family cars at the top and niche cars in the basement doesn't tell the entire story, though.
Yes, there are some cars that you expect would sell in small volumes. Sporty things like the Porsche Boxster, Vette-in-drag Caddy XLR, blob-tacular Lexus SC430, and Audi A8/S8 über-sedan all sold in expected tiny numbers for such specialized machinery. Rounding out the nadir of automotive sales, you'll find nearly every Jaguar model, and some dead-on-the-vine products like the Mazda B-series pickups (Ford Ranger) and Isuzu Ascender (Chevy Trailblazer).
In a move billed as potentially assisting Navistar with "life after Ford," the company is talking to GM about buying the General's medium-duty truck unit. Navistar already makes trucks and engines, and talks are only just beginning, but buying the GM unit would allow it to enlarge its market share and remove a competitor. Navistar, if you'll remember, is locked in a legal tussle with Ford to the tune of $2 billion. Navistar says that Ford is looking at introducing its own engines before 2012, in breach of contract; Ford says it's paying far too much for Navistar's 6-liter PowerStroke Super Duty engine issues.
Were GM to sell its medium-duty truck unit, assuming the price were right, GM would shed a non-core division, make a profit, and be able to focus on making cars. GM's medium-duty trucks are sold as the Chevy Kodiak, GM Topkick (aka "Ironhide"), and Isuzu T-Series, which together account for almost 12% of the medium-duty truck market. And apparently the medium-duties aren't the only ones on the block: GM is in talks to let Allison Transmissions go as well.
When the fruity people at Del Monte closed their Pinson Valley distribution center in Alabama, they were left with 300k square-feet worth of warehouse space and a lot of unsold canned pears. Being in the market for a manufacturing center, Isuzu decided to pick up the facility with the intention of investing several million bucks to turn the warehouse into their newest North American commercial truck plant.
Over the next few years, 1,000 workers will be putting together medium- and full-size trucks using parts from outside sources. Isuzu hasn't set a date for the retrofitting or production to begin.
One interesting tidbit from the article in al.com, was that Isuzu may decide to build a smaller commercial truck for the U.S. market and has plans to introduce a four-ton truck into its lineup in 2009.
General Motors and Isuzu Motors Ltd. will get together for another joint venture to start developing new pickups together for emerging markets. The JV, called LCV Platform Engineering Corp., has worked together successfully before on pickup development and production, and despite GM having sold off much of its Japanese investments (Isuzu, Suzuki, Subaru, etc.), the company says the work it has done with Isuzu to develop and produce pickups should continue due to its success in the past.
LCV Platform Engineering Corp. is a 50-50 joint venture between General Motors and Isuzu based in Fujisawa, Japan. The arrangement and accompanying facilities should be ready to go in September of this year.
[Source: Associated Press via the Detroit Free Press]
Shiro Nakamura, a senior vice president for Nissan Motor Co. and design chief for the automaker, believes
that General Motors has been suffering from a lack of awareness when it comes to consumers' needs:
"there was a lack of customer-orientation." And arguably, he should know: Nakamura previously worked
for Isuzu Motors Ltd. during the Eighties before joining Nissan. GM and Isuzu had formed their alliance a decade
earlier and Nakamura met and worked with many GM designers at that time.
But despite GM's current problems,
Nakamura remembers the company fondly, saying he had worked with some of the world's best designers. It will be
interesting to see if he applies any of that experience as he assumes chief creative officer in Nissan this month.
Is Nakamura correct? Take a crack at the issue in 'comments.'
Put on your acid wash jeans and brush out your feathered locks, people, because we're about to revisit the '80s.
Autoblog reader Steve sent us a link to this Google video of the Isuzu Gemini showing off some physics-defying stuff --
and we all know how bad CG was back then, so it's more than likely these stunts are the real deal.
Please
don't try this at home with your Aveo. Not all small cars are made alike.