History of Isuzu Company

Company History:

One of the largest manufacturers of medium and heavy trucks worldwide, Isuzu Motors Ltd. also manufactures SUVs, pickup trucks and diesels. Isuzu ventured into the passenger car market in the 1980s, but withdrew in 1991 after his line of passengers joining the company to heavy losses. With the help of the part owner of General Motors (GM), Isuzu returned to profitability in the mid-1990s, mainly focusing on his truck and a strong expertise in diesel engines. Being something of a manufacturing authorization subsidiary of GM, Isuzu has completed its strong Asian sales by building small trucks and components for the distribution of General Motors.

However, the Asian economic crisis of late 1990, combined with falling auto sales in the United States, drove the company deep in debt, and the first years of the 21 century, Isuzu had to make a series of programs of structural change radical, the great hopes of re-establishing himself, and profitable, truck manufacturers in the global automotive market.

Early history

Isuzu Motors has come from the diversification in 1916 by the Tokyo Ishikawajima Shipbuilding and Engineering Company. The company was founded after the Meiji Restoration to build a heavy Ishikawajima Ship Island near Tokyo, are asked to isolate the economic crisis in the shipbuilding sector. Tokyo Ishikawajima started the venture with Tokyo Gas and Electric Industrial Company, which has been the experience necessary for the engineering design of vehicles. In fact, Tokyo Gas has produced its first car, truck type, in 1918, with engines from Tokyo Ishikawajima. The partnership has produced a variety of models under license from British company Wolseley, including the A9, the car model, which went into production in Japan in 1922. In 1929 the company was incorporated separately Ishikawajima Automotive Manufacturing, Ltd.

The company has developed an air-cooled diesel engine in 1934. His pioneering work in this area has established the Automotive Group as a leader in diesel technology in the 1930's. Through its partnership with Tokyo Ishikawajima and Tokyo Gas, the company became a supplier to the army. Under a system of mobilization of government in 1937, the interests of the Tokyo Motor Ishikawajima and Tokyo Gas have been officially merged into a new company called Tokyo Motor Show. Mass production of air-cooled diesel engine, started this year.

World War II and post-war recovery

In 1938, in Tokyo Motors, began production of a truck on a new board, Isuzu - Japanese For now, however, the military had taken control of the government and launched a war against China, "50 bells." . As a result, General Motors in Tokyo came as part of the production plans of the government and much of its production was assigned to the Army. In 1939, General Motors of Tokyo has developed a new diesel, the DA40, which represents another milestone in diesel technology company. But in 1942, the United States and Britain were at war with Japan. With the war engulfing the economy is operating under emergency conditions, the operations of General Motors in Tokyo were fragmented for greater rationalization of the automotive industry. Truck Company was split into a new company called Hino Heavy Industries (later Hino Motors). Tokyo engines continued to operate as a chassis builder, but resumed the production of engines in 1943.

A year later, Japan was exposed to the bombing. As a military asset is located in a large industrial center, Engines of Tokyo had been exposed to these incursions. The production is completely stopped, until the war ended in September 1945. Still, Tokyo Motors was quick to recover from the war and resumed production before the end of the year. In 1946, the company introduced a new diesel truck named TX80. This product has helped the Tokyo Motors large investments in funds, and has offered to expand their research products.

The company changed its name to Isuzu Motors Ltd. in 1949. Like many other Japanese companies, who were born in war Isuzu returned to the business of military supplies, but this time the customer was the U.S. Army. These large supply contracts were the key to stable capital growth and Isuzu. The company has become an important resource for Americans, especially at the end of 1950, when hostilities broke out on the Korean peninsula. Provided a range of Isuzu trucks and other industrial products are fighting the aggression of North Korea, to help promote the company's position in the market for diesel engines. When the armistice was signed in 1953, he returned Isuzu licensing agreements with the British. The company has signed a contract to build a machine designed by Rootes Group (later called the Talbot and the French company PSA). Under the agreement, Isuzu Hillman Minx has produced.

In 1959, Isuzu introduced a new two-ton N-series truck called Elf. This was followed in 1961 by an attempt to equip a car with a small Isuzu diesel engine. As the economy and reliable diesel engine Bellel car was ugly, noisy, and finally, a commercial failure. Consumers are clearly in favor of a more cosmopolitan, if the car less convenient. In 1962, Isuzu has opened a new plant in Fujisawa. With expanded capacity, the company launched in 1963 Bellet car, followed by the model of Florian in 1967. Next year, Isuzu rolled out the two-door sport coupe 117, a luxury model like the Ford Mustang. In 1970, Isuzu has introduced two new trucks, medium Forward (named after the forward control) and a diesel of 12 tonnes.

Alliance with General Motors in 1970

Although Isuzu has become a recognized leader in the truck market was the rapid development of new models left financially weakened. When it became bankers to the company that the market would be able to support new product line Isuzu, they began negotiations with its competitors, hoping to arrange a merger of Isuzu with a more stable society. Although companies such as Fuji Heavy Industries, Mitsubishi Corporation, and Toyota Motor Corporation has probably been contacted, it was General Motors, which occurred with the greatest interest in Isuzu. The automotive giant was impressed with elevator Isuzu export markets in the U.S. and Asia, and hopes to include it in its own global strategies. In 1971 General Motors purchased a 34.2 percent share of Isuzu. As part of its marketing tie-up with General Motors, Isuzu KB pick-up truck was sold by GM dealers in the United States in 1972.

In 1974, General Motors Isuzu used for the production of the Kadett, a model developed by its German subsidiary Opel nameplate Isuzu Gemini as Bellet.

Isuzu has introduced a fuel-efficient diesel engines with direct injection in 1974 two new truck models, Forward Forward SBR and RBG. Rising fuel prices have made these models particularly popular with consumers tired of inflation in Japan. General Motors saw the fuel efficiency of Isuzu models as a clear competitive advantage in the U.S. market. In 1976 he began importing the Twins in the United States as the Buick Opel. Get consumers suspect that the German designs that are sold by dealers of a U.S. company that actually manufactured in Japan. But, as had been suspected Gemini GM / Opel an interesting alternative to gas hungry American models, particularly as a second household vehicle. In this role, automobile displaced competitors such as Toyota, Datsun and Volkswagen. Isuzu was new growth in the U.S. market with a pickup truck diesel sold in the United States as the Chevrolet Luv in 1977.

The energy crisis has had an increasing toll on GM models in the United States, including those built by Isuzu. A rebellion of the consumer against a small car low power such as Opel, Ford Pinto and the Gremlin Isuzu placed in a down market at the wrong time. Despite a temporary increase in fuel prices in 1979 fell Isuzu product line is increasingly out of step with American tastes. Shocked by the poor quality of many American models, consumers have been attracted by Toyota, Honda and Nissan Motor Co. in increasing numbers.

Isuzu, General Motors' production has declined steadily from 1979 to 1981. In response to what felt like the loss of interaction of GM, Isuzu established its dealer network in the United States by American Isuzu Motors Inc., which is technically in competition with GM at the wholesale level. Commensurate with the establishment of a new group, Isuzu has agreed to change its model of Luv truck. General Motors CEO Roger Smith has put a bomb Isuzu President T. Okamoto in a landmark 1981 meeting. Isuzu has announced that it had lost its potential as a global partner in favor of GM. But rather than give up the partnership, Okamoto has asked Smith to help the GM to buy the share of Honda, a leading Japanese car in the fastest growing.

Okamoto was surprised by the sudden change of events, but could not refuse the request of the shareholder Isuzu. Finally, Honda has expressed no interest in an alliance with General Motors, saw its own global growth prospects as excellent, even without such a partnership. General Motors set instead of a 5 per cent in Suzuki Motors - a small consolation. General Motors may have intended to use this new partnership to benefit from Isuzu Suzuki hopes that the two companies will compete for the right to supply GM. That was the case, General Motors had no choice but to develop its relationship with Isuzu. The company has established new contracts with GM to build a model called the storm in a entirely new nameplate, Geo. Again, part of General Motors' international strategy, Isuzu built new production facilities in the joint UK and Australia.

Isuzu also considered a long-term agreement with Suzuki and marketing Yanase & Company, which included the installation of parts Isuzu Suzuki.

In an effort to raise awareness and stimulate the name of Isuzu truck sales company in the U.S., Isuzu has launched an advertising campaign with actor David Leisure revolutionary. The interpreter introduced himself as a spokesman for the name of Joe Isuzu, outrageously false statements made about products Isuzu. A series of corrections provide subtitles and jokes for entertainment reporting. The campaign could easily have failed if it were not for the delivery of the caustic comedy and obviously artificial smile. In one ad, Joe Isuzu concludes: "What happens if lightning I think I'm lying." At this time the actor is incinerated by a blinding light, a cloud of smoke Seconds later the door. irrepressible voice in the air and falls into the bed of a Isuzu truck. The ads were very effective in promoting and launching the careers of entertainment Isuzu, but have had limited impact on sales of Isuzu. (The company recorded no growth in sales of passenger cars.

World of joint ventures in the 1980

To remove the effect of currency fluctuations and stabilize the expected demand for Isuzu has begun to explore the possibility of placing the plant in the United States. Other Japanese manufacturers like Toyota and Honda, had already been established in American factories. But Isuzu, start-up costs were high and the company's sales volumes were too small to justify the desperate move. Fortunately, Isuzu, Subaru, a subsidiary of Fuji Heavy Industries, car, suffered the same problem. Both companies operate in slightly different areas of the U.S. market, then a joint venture between them was credible. Isuzu and Subaru has agreed to build together factory in Lafayette, Indiana, in 1987. The plant was introduced two years later, with Isuzu providing a constant supply of American vehicles built in America through the distribution of the sales organization.

Isuzu export sales exceeding three million units in 1986, but again, much of this growth occurred in the Asian markets and was recorded in sales of trucks. This year, Isuzu had a joint venture with Kawasaki Heavy Industries named coach of indigenous knowledge, Ltd. for the manufacture of bus bodies. On the basis of its franchise in Asia, Isuzu has established a subsidiary in Thailand to manufacture engines and a joint venture with General Motors in Australia next year. These efforts have contributed to the world as a manufacturer Isuzu Truck (on a unit basis) in 1987. The company has made several technological advances this year, including the development of an adiabatic ceramic engine and transmission system NAVI electronically controlled, which was the first of its kind.

Isuzu completed a series of other joint business agreements in 1990, including the PT Gaya Motor Indonesia to build trucks in that country. This factory joined the Isuzu plant in other countries such as Thailand, Malaysia and Egypt. The company has also entered into agreements to market Isuzu multi-purpose vehicles in Japan through the Jusco Company, Car Life, and to handle sales of GM's Opel and Volvo Trucks in Japan. This expansion has helped Isuzu maintain its position as the largest producer of trucks. But the company's financial statements indicated a high price for this leadership. The company has lost $ 500000000 in 1991 and was financially shaky.

Refocusing in the 1990s

This deep concern for General Motors, which was unable to give up its investment in Isuzu by market value down. Isuzu has been the main source of imports of light trucks and heavy trucks from GM and 37.5 percent of its shares were held by American society. Isuzu continued to lose money until 1992, prompting the board of the company to General Motors asking for help. As a condition, GM has requested that one of its experts in strategic planning, Donald T. Sullivan was installed as executive vice president of operations, responsible for the reorganization of the Isuzu business, engineering, and production schedules. It was an unprecedented move. No other non-Japanese manufacturer were a Japanese director who does not speak in such a position, or give a wide margin as an American re-write the business plan.

Sullivan first step was to increase production at its plant in Subaru-Isuzu Automotive in Indiana. It lightened online Isuzu commercial vehicles in the hope of improving the efficiency of production of fewer models and eliminate cannibalization within product line. A strategy of downsizing virtually unknown in Japan, in summary Sullivan reduced capital budgets by 12.5 percent, hoping to eliminate waste through cost savings induced budget. Short stop layoffs, a tactic that was seen to breed disloyalty of employees only in Japan, Sullivan ordered a reduction in temporary labor Isuzu.

Perhaps most dramatic was the conclusion of Sullivan that Isuzu was not a viable competitive market automotive. Instead of investing large sums in a tough market segment, Isuzu Sullivan advised to leave the automotive market and focus on what he did best. For Isuzu, which has dropped to just three products: trucks, recreational vehicles and engines. Since the production of GM appealed the Geo Storm Isuzu model, the response to GM was irregular. "Chevrolet marketing guys were disappointed," Sullivan quoted in Forbes in 1994. "But business people looking at the financial liability from GM Isuzu was a different feeling."

These efforts seemed to have a positive impact on the activities stemming from losses Isuzu again to reverse the gradual decline in sales. By the end of Isuzu in the fiscal year 1993, the company announced a loss of $ 39 million. Sullivan, however, was even greater hope for the company. "I am proud of the success of the Isuzu," said Forbes. "But we still managed to remove the identification of success." Although the 1994 fiscal year ended with even greater gains, Isuzu already done the heavy burden of debt at $ 7.4 billion.

The measures taken by Isuzu under the tutelage of new Isuzu Donald Sullivan carefully placed in the overall strategy of General Motors. Although GM has lost its Geo Storm provider, turned to the experience of the incorporation of Isuzu in other areas. For example, the division of General Motors Europe has started to buy more diesel engines Isuzu. Michael Nylin, Sullivan presented by General Motors to help guide strategic planning Isuzu, trying to match product development with the needs of GM Isuzu. One result of this effort was a joint venture between Isuzu and General Motors to produce light trucks. Started in 1994 in Janesville, Wisconsin, the company asked to supply Isuzu cab and chassis, shipping from Japan and General Motors to produce the gasoline engine, a GM technology that Isuzu had more experience. Isuzu Sullivan also hopes to fit into the overall strategy of GM in providing GM with an entry in the Asian markets.

GM hopes to take advantage of its passenger cars to heavy sales of Isuzu pick-up in Asia to convince Asian car dealers to sell together.

The future of the company had come to depend on its relationship with other automakers, General Motors, in general, and particularly his ability to score gains on sales of their products. Among them, the series F (Forward) medium-duty trucks, truck tractors C Series trucks and N series (Elf) microphones. Light trucks manufactured in China were planned in 1993 when Isuzu have agreed a joint venture with Jiangxi car plant and Itochu. The company has expanded its relationship with other manufacturers when it signed an agreement with Nissan in 1994 to cross the supply of commercial vehicles, especially trucks Isuzu Elf two and three tons Caravan and Nissan.

The success of the company in the United States, but was injured in 1996 when Consumer Reports rated the Isuzu Trooper "not acceptable". Consumers Union (CU), publisher of Consumer Reports magazine issued a security warning about a sport utility vehicle, saying the Trooper "has shown a pronounced tendency to turn in our avoidance maneuver tests." Isuzu has contested the findings report, noting that the Trooper met all federal safety standards and that the company had received no reports of rollover accidents involving the Trooper. He also condemned the test as unreliable Consumers Union. Union Consumer maintained its claim, but his request for investigation to the default National Highway Traffic Safety Administration (NHTSA) has been refused. The NHTSA said: "Because of gaps in the event of short duration CU and no other information considered by [NHTSA] indicates that the safety-related defects exist, there is no reasonable possibility that ...

safety-related defect in vehicles subject would be [found]. "In mid-1997 Isuzu failed lawsuit against Consumers Union, the defamation and denigration of the product. Although the company had purchased millions of dollars in damage, followed by Isuzu introduced a means of restoring the good name of the company.

Entering 1998, the company's future was in doubt because of the economic crisis in Asia. In November 1997, to slow sales in Japan and the limited market in Thailand has led to a close the Isuzu factory in Thailand, which had produced 120,000 vehicles in 1996. Asia-Isuzu truck sales backbone of the business, the company has had a significant threat to the economic problems of the region.

Entering the 21 st century

To survive in this difficult economic climate, Isuzu began looking for ways to strengthen ties with General Motors. From the company's operating manufacturing diesel engines that offer the greatest opportunity for long-term growth, Isuzu has entered a joint venture with GM in September 1998 to begin mass production of diesel engines in the U.S. . The new company, DMAX-Ltd., Are formed with a total investment of $ 300 million to carry out 100,000 engines a year in 2004. The new plant, production of 650,000 square feet in Moraine, Ohio, for the most state of the art facility of its kind in North America, Isuzu could benefit from its award-winning 4JX1-TC direct injection diesel engine. Although Isuzu produced more than 800,000 diesel engines in the world in 1998, that figure is expected to increase to 1.8 million in 2005, aiming to become the world's largest manufacturer of diesel engines.

In December 1998, GM has also invested an additional $ 456 million Isuzu, increasing its stake in Japanese automaker to 49 percent.

However, in the short term, the company was still in a serious recession and significant cost reduction has become inevitable. To this end, the company launched a series of restructuring plans in December 1998. The most complete was in May 2001 when the company announced its intention to reduce its workforce by about 10,000 employees in three years, plus the consolidation of several of its divisions and subsidiaries. The most radical, however, was the company's decision to transfer its manufacturing operations beginning in Thailand, where production costs were significantly lower than in Japan. Meanwhile, Isuzu has expanded its partnership with GM's to forge an agreement that will allow the company to begin supplying diesel engines for GM.

These radical rationalization efforts intended to reverse the company's recent poor financial performance, with the objective of making profits of ¥ 30 billion for 2004. Despite these measures, however, still suffered losses Isuzu ¥ 23.6 billion for the first half of 2001, compared with a loss of ¥ 22.1 billion for the same period last year, and in November 2001 the company was forced to cut 3300 additional jobs. During this difficult Isuzu has begun to contemplate the termination of truck manufacturing operations in Lafayette, Indiana. In January 2002, with the hope of further streamlining of its operations, Isuzu has merged its Japanese business manufacturing buses with Hino Motors.

Despite a continuing decline in sales during the first years of the 21st century, there were some signs of recovery. Although the company still lost 43000000000 yen in fiscal 2002, this represents a significant improvement in the losses of the previous year to ¥ 67 billion €. At the same time, an increase of 30 percent of domestic sales allowed the company to keep your plant running Kawasaki. However, losses were of great concern to General Motors, which began to reconsider its relations with the Japanese firm in difficulty. Although initially reluctant to invest more in the company in crisis, GM finally departed for the acquisition of some major companies Isuzu. In August 2002, GM announced its intention to acquire 60 percent in Poland and the values ​​of Isuzu diesel engines, while increasing its stake in the company DMAX Ltd 40-60 percent.

Unfortunately, this new infusion of capital could not do anything to reverse the fortunes of the company in this, and losses for the fiscal year ending March 2003 were over $ 1 billion. In late 2002, Isuzu launched its fourth restructuring plan in five years, and even began to consider abandoning the activity of trucks in total. After seeing its sales in North America to 36 percent in one year, the company officially announced its intention to cease its U.S. manufacturing operations in late 2004. Despite these cuts, Isuzu remained hopeful he would be able to continue to play a role in the lucrative U.S. market by importing cheaper trucks from its plant in Thailand. Although still mired in debt in the summer of 2003, Isuzu had high hopes that its revised business strategy with a strong emphasis on promoting its diesel technology, which soon would return the company to profitability.

The parent company subsidiaries: Isuzu Motors Asia Ltd., Isuzu (China) Holding Co.; Quingling Motors Co. Ltd., Jiangling-Isuzu Motors Co. Ltd., Guangzhou Isuzu Bus Co., Isuzu (Shanghai) Co. Ltd Trade Tech, Beijing Beiling Special Automobile Co., Isuzu Philippines Corporation, Isuzu Autoparts Manufacturing Corporation, Isuzu Vietnam Co., Ltd. (IVC); PT Mesin Isuzu Indonesia (MII) PT Pantja motor (PM), PT Astra Isuzu Casting Company (AICC) , Isuzu Motors Co., (Thailand) Ltd. (IMCT) Tri Petch Isuzu Sales Co., Ltd. (TIS), Isuzu Engine Manufacturing Co. (Thailand) Ltd. (IEMT), Isuzu Technical Center of Asia Co., Ltd. (ITA), Thai International Die Making Co., Ltd. (TID), IT Forging (Thailand) Co., Ltd. (ITF), Isuzu (Thailand) Co., Ltd., Isuzu Operations (Thailand) Co. , Ltd., Malaysia, trucks and buses Sdn. Bhd., Anadolu Isuzu Otomotiv Sanayi ve Ticaret AS, Isuzu Motors Europe Ltd., Isuzu Truck (UK) Ltd., Isuzu Motors Germany GmbH (IMG), Isuzu Motors Polska Sp zo.o.

(Poland), General Motors Egypt SAE, American Isuzu Motors Inc. (USA), Isuzu Motors America Inc. (USA) Subaru-Isuzu Automotive Inc. (SIA), DMAX, Ltd., General Motors Isuzu Commercial Truck, LLC (GMICT)-Isuzu General Motors Australia Ltd. (IGM) International Auto Co., Ltd., Taiwan Isuzu Motors Co., Ltd.

Major competitors: Ford Motor Company, Honda Motor Co., Ltd., Toyota Motor Corporation.

Also this year, Isuzu has plunged back into the diesel car market in Japan with a new sedan Florian.

) The situation was aggravated by the appreciation of the yen, in fact, artificially increase the price of Isuzu.

To achieve this goal, the company increased production capacity to its operations in Poland, which was already responsible for most of its production of diesel engines, from 100,000 to 200,000 units per year.