Source: http://www.isuzuperformance.com/isupage/#newsIn August of 2003, Isuzu released to the Japanese auto press, this rendered image of two vehicles identified as "sports coupe(s)", in a very obvious attempt to test the waters and see what public sentiments are toward a re entry of Isuzu in car making.
Here is a short time line to give an idea of the historic ramifications of this move by Isuzu:
1971, General Motors Corporation buys 32.4% of Isuzu and subcontracts them to make Chevy Luv pickup trucks.
1981, against the direct protest of General Motors, Isuzu puts the Piazza and Impulse into production, embarrassing GM because the newly redesigned Camaro and Trans Am pale in comparison to the Giugiaro designed sports coupe. This begins GM's vendetta against Isuzu.
1984, GM begins reselling rebadged Geminis under the Spectrum name, but, as a condition of the arrangement, restricts Isuzu's rights to advertise their own cars in the US and European markets and imposes quotas on the number of vehicles Isuzu can sell. This effectively destroys any chance for Isuzu to build brand consciousness, brand loyalty, and a reputation as a car builder, in all markets outside Japan.
GM imposed design changes on the Gemini and did not have the courtesy to ask the designer, Giugiaro, for permission to make the changes to his design. Giugiaro took this as an insult and not only refused to do any further work with Isuzu and GM, but for many years, he denied having designed the Gemini.
1989, GM begins reselling rebadged Gemini Coupes under the Storm name. This vehicle outsells GM's own domestically produced Cavalier, Sunbird, Corsica, and Beretta, combined, causing great embarrassment for GM.
1994, GM discontinues their Storm model, eliminating close to 95% of Isuzu sales of cars leaving Isuzu with weak name recognition and little hope of recovering from this financial blow. This combines with the collapse of the Japanese economy after Isuzu went up market to more luxurious and more expensive models with their 1990-93 redesign of their cars, and Isuzu decided to discontinue car sales.
1994, Isuzu constructs a shrine to the much missed Gemini car in their Fujisawa plant.
~1998, Isuzu attempts to purchase then financially troubled Nissan Motor Company in order to acquire a name and a company to build passenger cars under.
1999, GM acquires 49% of Isuzu, controlling interest, but due to Japanese laws restricting foreign ownership of Japanese corporations and Japanese labor laws which strictly follow seniority, GM is unable to appoint an American to head Isuzu and must continue to deal with Isuzu management's continued resistance to GM domination. GM is instead allowed to install a non-voting "advisor" to the corporate board.
July, 2000, GM asks Suzuki, Isuzu, and Toyota, to rebadge and sell Chevrolet, Opel, and Saturn small car models to increase global sales of those GM models. Suzuki and Isuzu refuse. Toyota rebadges and sells the Chevrolet Cavalier as the Toyota Cavalier, with very limited sucess, mostly only to fleet buyers (to delivery companies and for businesses needing company cars). Saturn established its own vehicle distribution network. Acceptance by the Japanese buying public is low, sales peaking at 1,300 units per year, due to poor quality and value comparison to Toyota's domestic product, which is used by most as a benchmark.
2001, Isuzu lays off 25% of their international work force due to financial losses and ailing sales.
2002, Isuzu negotiates a $84 million debt restructure with it's Japanese bank and buys 37% ownership back from GM, reducing GM's ownership of Isuzu to 12%. GM's "advisor" on the corporate board is replaced by a position filled by the Japanese bank, who is allowed a vote. As part of the restructuring, Isuzu sells the Lafayette, Indiana plant to Fuji Heavy Industries (Subaru), withdrawing completely from their joint SUV venture with GM. The GM built Trailblazer set to be rebadged as an Isuzu Ascender seems all but dead on arrival as Isuzu plans for production of their own SUVs in Thailand.
2003, Isuzu finds itself in the enviable position of being one of only three commercial truck producers in Japan who is selling diesel trucks that comply with the new, strict emissions laws for the Tokyo metropolitan area, which require particle scrubbers for exhaust. The law outlaws the use of trucks without these devices in and around the four prefectures surrounding Tokyo, and as no aftermarket retrofit is available, truck operators are required to buy new trucks. Mazda, unable to develop a commercial truck that complies with the new emissions laws, subcontracts all it's commercial truck production to Isuzu. Isuzu leads commercial truck sales in Japan and shows a profit for the first half of 2003 for the first time in decades. Isuzu's stock showed a 400% increase in value (from 50 yen/share to 200 yen/share).
2003, Isuzu releases rendered images of what they call "a sports coupe" which is described to be in the vane of such noted Isuzu cars as the Bellett 1600GTR and the Giugiaro designed 117 Coupe.
2003, Sources within American Isuzu Motors vehicle distribution (US market vehicle distributor) indicate that Isuzu intends to severe all ties with GM by 2007 (this can be confirmed on Isuzu's website in their Three Year Business Plan which states one of its primary recapitalization goal as "Retire GM's shareholding without consideration"), ending all joint ventures, rebadging, parts sharing, and cooperative efforts and purchasing back all of the remaining 12% of stock owned by GM. The Rodeo and Axiom (now made by Subaru at the Lafayette, Indiana plant) will be discontinued at or shortly after the end of the 2004 model year. There will be no serious effort to market the GM made Ascender through the 2005 and 2006 model years, after which Isuzu's contract to sell that vehicle will end. Isuzu plans to introduce at least two completely new models in late 2006, totally designed and manufactured by Isuzu and with no ties to GM.
January 2004, Isuzu stock passes 235 Yen per share, a 470% increase since Spring 2003.
February 2004, Sources within American Isuzu Motors public relations and vehicle development departments indicate that the replacement for the Isuzu Trooper will be built on the Isuzu D-Max/Colorado platform in Thailand and that model should be introduced as a 2005 1/2 model year vehicle. Work continues on this vehicle within the Ceritos headquarters of AIM where the vehicle is referred to in house simply as "the new Trooper". Current plans are that the concept car for this vehicle will be introduced at the Detroit Auto Show and later displayed at the Chicago Auto Show. Further plans are to introduce the Thailand made D-Max pickup into the US market, also hopefully in 2006.
Isuzu's PR department was very proud to point out that the 250 HP 6VE1 V6 direct injection engine has received accolades and awards from both Popular Science Magazine and Ward's Automotive. Direct injection is seen as the future for gasoline engines to improve economy, emissions, and power output, and Isuzu's engine has been held out as one of the best in the industry. In addition to this, Isuzu plans to push diesel engine powered models in their SUV lineup as an alternative to other manufacturer's hybrid vehicle offerings. Diesel offers the same environmental benefits with power, drivability, range, and cost that is comparable or favorable to gasoline. The problem is that the US market has not been exposed to many of the better diesel powered vehicles which are almost indistinguishable from their gasoline powered equivalents. The US market has seen mostly very tempermental and difficult to drive, and the reputation of diesel powerplants has suffered in this market as a result of this. General Motors, Ford, and Daimler/Chysler have already expanded their SUV and pickup offerings with diesel offerings (to help them meet tightening CAFE standards) and have begun marketing campaigns to improve the reputation of diesel power in the US, and Isuzu plans to reap the benefits of these efforts by following the promotional campaigns of the US manufacturers with their own campaign to reinforce diesel's improved reputation and point out that Isuzu is the oldest, most experiences diesel manufacturer in the world, offering better quality and higher performing diesel products at lower prices than the US makers.
2005 is seen as the transition year between the old GM dominated Isuzu and the new Isuzu that is free to build, sell, and advertise whatever, wherever, whenever, and in whatever quantity they like. Getting past a tight year which their only offerings will be the rebadged, GM made Ascender, will be the challenge, but they are already on track to surpass their needed sales minimum in the US market by 20,000 units in this fiscal year. The only remaining concern is that now that all decisions will be made by Isuzu in Japan, the US office hopes to be allotted a large enough advertising budget to allow for a serious promotional effort for what amounts to a reintroduction of the marque in the US market.
Early April 2004, Isuzu stock passes 265 Yen per share, a 550% increase since Spring 2003.
Mid April 2004, Isuzu stock passes 310 Yen per share.
July 2004, Isuzu stock passes 323 Yen per share.
August 2004, Sources within Japan indicate that Isuzu Motors has announced, within their domestic market, the introduction of the "D-Max Hi Lander" sport utility vehicle (Trooper replacement) will be manufactured in Thailand and introduced in Thailand for the 2005 model year. This strategy introduces the SUV first into the market dominated by the D-Max Pickup, that vehicle being the number one selling automobile in the large Thai market. The Thai made D-Max Hi-Lander will then be introduced into the Japanese home market in 2006.
August 2004, Dutch shipping company TPG TNT Logistics wins a $48.25 Million contract to pack and ship "car parts" from Isuzu plants around the world to assembly plants in Thailand. Note the specific use of the phrase "car parts", quoted directly from the Reuters story, which conspicously did not use the phrase "truck parts".
August 2004, Universal Motors Israel is in talks with "car maker Isuzu" Motors for Central European sales and distribution rights. Again note Reuters use of the word "car" and their specific omission of the word "truck". Also note that Isuzu is expanding their distribution network.
September 2004, Isuzu reports to the Daily Yomiuri newspaper that they are now exporting the D-Max Pickup to 60 countries outside Thailand and plan to increase that number to 100 countries over the next year. Production resumes at a second assembly plant outside Bankock that will increase production from 240,000 to 320,000 units annually.
November 2-7, 2004, Isuzu displayed both its commercial and sport utility vehicles at the "The 38th Tokyo Motor Show for Commercial & Barrier-free Vehicles". This was the Japanese debut of the new 2005 Isuzu Crosswind Sportivo AUV, which forshadows the interoduction of the 2005 Isuzu Adventure Master midsized utility, that is expected to be the "Ford Everest Killer" in the Southeast Asian Market. The Crosswind is made in the Philippines (the AM will be also) and Isuzu punctuated this by displaying the vehicle flanked by two lovely Filipino race queen models. Isuzu did not have a concept vehicle on display but did have a guest speaker, "Ida-san" (this is the affectionate nick name that Isuzu enthusiasts use for Isuzu Motors president Yoshinori Ida), who stated confidently that he expects Isuzu's prosperity to continue and for Isuzu, in the coming years, to retake its position in the upper tier of Japanese automakers. Isuzu also displayed it's handicap accessible Giga over the road truck.
Early November 2004, Isuzu stock hits 325 Yen per share, recovering from July's market scare over oil prices more quickly than the majority of Japanese stocks.
Mid November 2004, Reuters, the Associated Press, and the Detroit Times all report that GM's holding in Isuzu has been decreased from 12% in
January of 2003 to 9% as of November 17, 2004.
November 16, 2004, Autoweek confirms what was reported in this very time line in February of 2004 and also in 2003: As the stocks of the discontinued Rodeo and Axiom models run out, Isuzu will expend minimal efforts marketing the GM made Ascender and wait out the end the contract which obligates them to sell the vehicle, tightenning its belt and anticipating the introduction of the Thai made pickup and mid and small size SUV replacements slated for introduction in 2006. Autoweek's Kathy Jackson quotes Scott Lasher, Isuzu dealership owner in Sacramento and Chip Letzgus, spokesman for American Isuzu Motors, in this somewhat late in delivery, but always appreciated confirmation of what was reported here over nine months earlier.
November 17, 2004, Mitsubishi Corp. (whose divisions include banking, steel manufacturing, machinery manufacturing, etc.) purchases $90 million in preferred shares of Isuzu stock, most likely from Mizuho Corporate Bank and other banks, making Mitsubishi Corp. the second largest stake holder in Isuzu at around 8%. It is important to note that Mitsubishi Motors, owned by Mitsubishi Corp., is one of only two Japanese automakers currently operating in the red (the other is Subaru ["Subaru hopes the SUV (B9X) will help it shake off the rust that has hampered sales in recent years", Philadelphia Business Journal; "Subaru maker Fuji Heavy's H1 op profit down 15 pct", Reuters]). Mitsubishi has suffered due to defect cover ups, lawsuits from accidents caused by defects, total loss of consumer confidence in their products within Japan, loss of government contracts due to the same, being banned from selling vehicles in the growing China market for the same, and an unrelated loss of US sales due to record numbers of defaults on zero-down financing sales. Mitsubishi was refused a bailout by Daimler and plans to rebadge Mitsubishi small cars as Nissans in Japan fell through. Could Mitsubishi Corp.'s investment in Isuzu lead to a rebadging of Lancers and Colts under the Isuzu name?
Mid November 2004, on November 17, Itochu Corp. trading house buys $67 million in preferred shares of Isuzu stock, most likely from Mizuho Corporate Bank and other banks, making it the third largest stake holder in Isuzu.
November 18, 2004, Isuzu released a new three year plan and revealed that their half fiscal year profits had risen 44%, an increase of $105 million. Isuzu released a new and more agressive three-year-plan, stating that their goals in the previous plan of 2002 were already in sight. Increased production and expanding into new markets were the main focus of the new plan, which means that we are very likely to see the D-Max and the Mu-7 and Hi-Lander SUVs, based on the D-Max, in the US, as well as other passenger offerings. Isuzu also announced a bold plan to reduce capital by buying back $120 million in preferred shares. The size of such a stock buy back plan suggests a further reduction of GM's holdings in Isuzu. On the news of the profit announcement, new three-year-plan, and the plan to buy back the referred shares, Isuzu's common stock bounced up 20 points.
Mid December, 2004, reports in the AP, Reuters, and Just-Auto.Com indicate that once Isuzu executes the stock buy back and conversion of preferred shares to common shares, Mitsubishi will supplant General Motors as the largest share holder in Isuzu with 11 percent, Itochu will be third with 6 percent.
Mid December, 2004, Isuzu President Iide issued a public statement asking for reinvestment by GM. Outside Isuzu, this appears to be an act of "aisatsu", a tradition calling for all businessmen to visit their business contacts at other companies in the first days of January of each New Year, in order to express how much they value continuing their business relationships in the future, whether they want to continue a business relationship with the individual or not. The timing of Mr. Iide's statement corresponds with the completion of the previous fiscal year and beginning of the new fiscal year, and this has all the appearances of an acto of "aisatsu" with someone Isuzu really doesn't want to own any more of their shares. However, sources within Isuzu Motors public relations and vehicle development departments see this more in the context that Isuzu is now on firm financial footing, and is in the position of power to dictate the terms and conditions to an ailing GM, seeking a financial agreement that would benefit Isuzu instead of the previous usurious relationship dictated by GM.
January 2005, Isuzu Motors and Mitsubishi Corp. have sign an agreement with Malaysian auto firm DRB-Hicom Bhd, who has been the distributor of Isuzu vehicles in the Malasian market (second largest in Asia behind the Philipines) for 20 years. DRB will assemble the Isuzu pickups, SUVs, and other "vehicles" in Pahang which it will then sell in Malasia. DRB currently assembles vehicles for Audi, Volkswagen, Mitsubishi and Proton for the Malasian market, and have a multitude of passenger car specific assembly lines that are a significant asset to Isuzu for future passenger car (sedan or coupe) development and manufacture.
February 2005, Isuzu secures a $2.89 Billion capitol investment from Japanese banks. This shows a great deal of confidence from the Japanese financial institutions in the current success of Isuzu and future outlook for the company.
February 2005, Sources within American Isuzu Motors public relations and vehicle development departments indicate that Isuzu will not sell the MU-7 vehicle into the US. They do not see enough potential sales volume by the time the vehicle could be certified for importation.
The D-Max Pickup, will not be imported from Thailand due to continuation of high import tariffs that were expected to be withdrawn or expire. The current political situation in the US makes it unlikely that politicians would suggest the lifting of these protectionist tariffs. Isuzu will rebadge the Colorado pickup (which Isuzu designed). The question remains as to if Japanese sheet metal will be imported for the Isuzu model, or if simple badge and grille changes are made to differentiate the models. Isuzu had also considered rebadging the Equinox, but did not see the vehicle as fitting the current direction of the company.
The sale of the Lafayette, Indiana assembly plant to Subaru (now being used to assemble the B9 Tribeca), seems to have caused difficulties in the area of importation vs. domestic assembly for US market sales. However, Isuzu's new partner, Mitsubishi, has announced that they are looking for someone to buy their entire North American manufacturing operation...
The Trooper will not be imported to the US again until a new generation design is put into production, but the current generation Trooper is enjoying such high sales volume in Asia that plans for a redesign are not seen in the immediate future.
The new sister relationship with Mitsubishi has not been made clear yet, but is expected to involve either shared raw material and OE supplier sources to reduce costs through higher volume, or shared engineering and manufacturing of sister models (rebadging of Mitsubishi passenger car models as Isuzus or development of shared platforms to be used by both partners.
GM has begun marketing the Isuzu made V6 Diesel under its Duramax name in comparison to less environmentally friendly offerings by Dodge/Cummins and Ford. This appears to foreshadow an increase in the Isuzu made Duramax range to sell on the reputation of the well established and respected 6.6 liter. We can expect to see the 3.0 liter I-4 Isuzu Diesel for small and mid sized pickups and the 1.7 liter Isuzu Diesel in small cars like the Cobalt, under the Duramax name in the near future.
Isuzu is now not only designing the complete line of GM Commercial Vehicle offerings, but has now been put in charge of marketing the complete line itself, with no more GM involvement in the commercial vehicle line.
Late March 2005, the Detroit News confirms that the MU-7 will not be imported to the US market and the introduction of the 2006 model i-280 and i-350 model pickups, which will be rebadged Chevrolet Colorado pickup. However, the Detroit News fails to credit the fact that Isuzu designed and engineered the Colorado truck for GM, based on the D-Max design that Isuzu was selling in Asia over a year before the Colorado hit the US market.
The concept drawing released by Isuzu and the written statement that accompanied it indicate it to be the new Sports Coupe(s). (Remember, Japanese has no plural form and this will be important immediately below).
One source indicates both cars are two different trim levels of the same model vehicle which is to compete with such Japanese piers as the Honda Integra (Acura RSX in the US) and Toyota Celica, both considered the dominant specialty small cars in the Japanese domestic market.
A second source indicates that these are in fact two different models following the recent auto industry trend for retro styling. The darker color car in the background is indicated as the "New Bellett GTR", a compact sports coupe approximately 158 inches in length with a 94 inch wheel base, a two door four seat with very rounded styling and flared fenders with a silhouette surprisingly similar to the Audi TT. The retro exterior elements that draw from the original Bellett GTR are the composition of the grille with integrated quad style headlamps, the two chromed bars across the grille itself, black painted hood, antenna ariel over the center of the windshield, crease lines in the hood, and three box notch back proportion. This vehicle would be expected to have a four cylinder engine, likely a 2 liter gasoline engine, with DOHC and possibly direct injection, from the 4EE engine series, but no firm information on drivetrain layout. This model would fill the role of the affordable sporty model in the lineup. Meanwhile, the lighter colored car in the foreground is described as the "New 117 Coupe", a mid sized sports coupe approximately 168 inches in length with a 101 inch wheel base, a two door four seat with a sloped rear window somewhat like a fast back body style. The retro exterior elements that draw form the original 117 Coupe are again the composition of the grille with integrated quad style headlamps, this time with the lower edge of four round lamps extending below the lower grille line, distinctive hexagonal emblem with bar extending to the left and right, flat hood devoid of creases, metal tone trim pieces, and the sloping rear window and rear trunk lid. This vehicle is expected to be rear wheel drive with the 250 HP 6VE1 V6 direct injection engine. This model would be an image car to compete with such cars as the Nissan 350Z and Mazda RX8.
Isuzu appears back on track to build cars.
Isuzu buys bck GM stock so hope exists for Daewoo
Moderators: daewoomofo, Moderators Group
Isuzu buys bck GM stock so hope exists for Daewoo
GM's obvious attempt to kill Isuzu has come to an end so there is now a precedent for such a thing. GM remains in a precarious financial state. much more so than the general public is aware of. Perhaps in time, and with Daewoo Korea getting its financial house in order, they can buy out GM's interest or at least relegate GM to a minority interest.