Chicken tax. Isuzu is part of the group trying to get this ended. Don't understand why? Look at the numbers. What's sad is how quickly Toyota moved their production into #1; a couple years ago Isuzu was the number one producer and truck seller. I don't know how many Toyota ships out; Isuzu may still be the #1 seller in Thailand.


Pickup tariff talks generate heat, not light
Harry Stoffer
Automotive News / February 27, 2006 - 6:00 am

More than 1 million vehicles were built in Thailand in 2005. About half were pickups. Here are capacity figures for the 5 largest manufacturers last year.

Company Cars and trucks
1. Toyota 350,000
2. Isuzu 200,000
3. Mitsubishi 170,000
4. AutoAlliance (Ford, Mazda) 135,000
5. Honda 120,000
Source: Runckel & Associates

WASHINGTON -- Low-cost, duty-free pickups built in Thailand won't be rolling off ships in U.S. ports any time soon. Top U.S. trade officials and their Thai counterparts have held a half-dozen negotiating sessions on a proposed free-trade agreement. But they have yet to take up the issue of cutting or eliminating the 25 percent U.S. tariff on imported pickups.

Interest groups on both sides address the tariff -- commonly called the "chicken tax" -- with urgency. The UAW and the Automotive Trade Policy Council, a group that represents General Motors, Ford Motor Co. and the Chrysler group on trade issues, warn that the proposed free-trade deal could threaten workers who build pickups in the United States.

More at the link above.

From: http://www.isuzunewsbureau.com/press.php?action=recent

PRESS STATEMENT ABOUT ISUZUÆS ANNOUNCEMENTS AT THE 2006 NADA CONVENTION

ORLANDO, Fla.ùOfficials of Isuzu Motors America, Inc., met with its franchised dealers at the National Automobile Dealer Association (NADA) convention today.

J. Terry Maloney, president and chief operating officer of the company, announced today that Isuzu Motors America, Inc., made a profit on operations in 2005 for the first time since 2000. Maloney attributed the turnaround to the extensive restructuring of the company and the success of its Ascender SUVs and the i-280/i-350 pickup trucks it launched last year.

Maloney said, ôIsuzu Motors America, Inc. is a valuable niche distributor that supplies real value by offering competitive pricing and outstanding warranty protection to the market.ö Isuzu offers a 7-year/75,000-mile limited powertrain warranty, which includes 7-year/75,000-mile roadside assistance, the best in the industry.

Maloney also said that Isuzu Motors Limited is continuing the process to develop a diesel engine which meets Japanese, European, and U.S. emissions standards.

Isuzu Motors America, Inc., is the U.S. distributor of Isuzu light vehicles and diesel engines. For more information call (800) 662-2464 or access www.IsuzuNewsBureau.com.

On Tuesday, March 7, 2006, GM sold 17.4 percent of Suzuki into the open market, as Suzuki concurrently bought back about the same number of shares. The move left GM with 3 percent of Suzuki.

GM raised about $2 billion in cash from the sale. Clarke predicted GM will book a pretax gain of between $550 million and $700 million.

GM, which lost $8.6 billion last year, is selling the shares to raise money. "It's a smart way to generate some cash that could fund other growth initiatives," Clarke says.

Clarke won't comment directly on whether GM might also sell all or part of its 12-percent stake in Isuzu Motors Ltd. "We've made no decision," he says.

"Isuzu is also a core alliance partner," he says. "As a matter of good business practice, we continually review our investments."
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Nissan launching Infiniti in Europe. Nissian not only needs to recruit exclusive dealers for Infiniti, but it also needs a V-6 diesel for Europe, where diesel models account for 50 percent of new-car sales.

Renault, which has a 44 percent stake in Nissan, is in charge of developing diesel engines for Infiniti, but a spokesman for the French brand says no date has been set for the engineÆs launch. Renault currently uses an Isuzu-sourced V-6 diesel in its large cars.

Thailand's Prime Minister Thaksin Shinawatra announced, in a subdued tone, Tuesday that he was resigning as prime minister.

While the USA has been pressing for a free trade agreement, the 2-months of protests means the mandate is on political reform, not economical. In addition, many Thai's fear the USA's big corporations will come in and take over. This means that economic reform and a free trade agreement (and the way Isuzu could get around the Chicken Tax(*) and export vehicles to the USA) are years away.

(*)Chicken Tax: A 1962 law creating a massive 25 percent tax on pickup trucks (and SUV's) made overseas and imported to the United States. The tax originally targeted German poultry imports to the USA and is called the "chicken tariff." German truck exports to the USA ceased, but now it hits unintended targets like Toyota, Honda, Nissan, Mitsubishi AND ISUZU. Ford and GM want to keep the law as it gives them a competitive advantage. Its part of why so many Asian companies open truck plants in the USA.

Here's the best article I saw explaining it, from the CATO institute. It has a nod to (quote from) Isuzu's President of American operations. It also explains about why the cool VW Minibus went away. Full story (interesting) at: http://www.freetrade.org/pubs/briefs/tbp-017.pdf

My Detailed Summary:
It really was about chickens. Germany was importing increasing numbers of USA chickens in 1962 (25% of poultry imports) and put up Regulation 22, a tax from 4.5 cents/lb to 13.5 cents/lb (in 1962 dollars) that shut us out of the whole European market. So we came up with the 2.5 to 25% tax on trucks, most of which were VW's at the time. It worked in the sense we hurt them; neither side dropped their import tax.

1960's -- The Japanese moved in and got around this law by making the 2-piece import (Cab Chassies and Truck Bed) then putting them together in the USA. Very small sales.

1970's -- As the USA didn't make light trucks, we sold the japanese ones put together in the US under names like Chevy Luv. Sales picking up.

1980's -- Once the Big 3 figured out Americans liked light trucks and the Big 3 knew how to make them, the B3 and the unions got together has had US Customs reclassify the cab chassies as a full truck--now import taxed at 25%. The tax was still 2.5% on cars. No more getting around the law.

1989 -- Customs changed and 2-door SUV's were vehicles for transport of goods (25% tax), but now 4-door SUV's joined minivans as passenger vehicles (2.5% tax)

1994 -- Federal Court of Appeals upheld the US Court of International Trade decision that the Nissan Pathfinder, despite it's 2-door design, was indeed a passenger vehicle and thus was subject to the lower 2.5% tax. This really mucked things up as number of doors was no longer decisive in classifying a vehicle as a car or truck. UAW lobbied strongly that all Multi-Passenger Vehicles be classified as trucks and the higher tax. It never passed.

All American companies became partners in foreign car businesses, while only Toyota and Honda remained sole-named. No European producers make pickup trucks any more except Chrysler--which ironicly is now a German company (check the HQ location). The law punishes the Japanese, who never raised their chicken import prices.

Terry Malony, president of Isuzu Motors America, said in 2004 that fighting the tariff will be his #1 priority so he can bring the DMax to the USA without building a billion dollar plant just to see if Americans will buy the truck in an already crowded market.

Despite the March rebound, 26.4 percent of dealers responding to an unscientific Automotive News survey last week still said their dealership posted a loss in the first quarter. Isuzu dealers reported the highest percentage of unprofitable stores, with 80 percent saying their franchise lost money during the first three months of the year.

Just 6 percent of Toyota and Honda brand franchise holders responding to the survey said they were unprofitable. That compares with 43 percent of Chrysler brand dealers, 39 percent of Chevrolet dealers and 36 percent of Ford brand retailers.

Except for March, "we've been consistently unprofitable here since October 1," said Doug Campbell, dealer principal of Campbell Ford-Lincoln-Mercury in Niles, Mich.

Foot traffic is off. And although volume isn't down much, the sales mix is shifting away from pickups and SUVs toward smaller, less profitable vehicles such as the Ford Fusion and Focus, Campbell said. It has made him tighten the belt by reducing overtime, cutting energy costs and trimming the ad budget.

"I'm just going to try to tread water until fall," Campbell said. "There's new product coming." He says he's optimistic about the 2007 Ford Edge crossover.

Import brand franchises are doing better.

"Thank God that I've got Toyota," said Jerre Penney, dealer principal of Bill Penney Toyota in Huntsville, Ala.

But even his Toyota store saw a profit decline in the first quarter, primarily because of aggressive discounting by other area Toyota dealers and rising floorplan costs.

His Mitsubishi store is in the red for the first quarter. "Last year we made a little money; this year is another story," Penney said.

From Automotive News, 5/16
So how do you get the most bang from your auto advertising buck? One of two ways, suggests a study by Compete Inc., a Boston marketing research firm.

Plan A: Spend a moderate amount but target potential buyers adroitly, as Mini and Scion did last year. Compete says the two brands tied for the No. 2 spot in the bang-for-the-buck race in 2005, spending just $38 in advertising per "in-market shopper." That's someone Compete has tracked on any of 30 third-party Internet sites researching that brand, says Lincoln Merrihew, managing director of Compete's automotive unit.

Plan B: Starve your ad budget and sell only a handful of vehicles.

That worked for Isuzu, the most efficient advertiser in the study. The brand sold only 12,177 trucks in the United States last year. But it spent peanuts on advertising: just $7 per shopper. (Alas, there's another side to the Isuzu success story: Its 2005 sales were down 55.2 percent from 2004.)

The industry average? $192 per in-market shopper, says Compete.
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Isuzu posts record operating profit (5/16)

OKYO -- Isuzu Motors Ltd. reported a 4.0 percent rise in annual operating profit on Tuesday thanks to brisk domestic and Asian truck sales, and it projected a further rise from this year's record result.

Powered by the results, Isuzu, which ended a 35-year equity alliance with struggling U.S. auto giant General Motors last month, doubled its dividend for the year ended March 31 to about 3 cents (3 yen), and forecast 4 yen for the current business year.

Operating profit for last year came to a record $819.4 million (90.66 billion yen), roughly in line with market expectations, as revenue grew 5.9 percent to $14.35 billion.

Domestic truck demand was lifted by continued replacement to meet more stringent emissions regulations, while sales of pickups and other trucks in Thailand and neighboring countries grew. North America saw a decline in SUV sales, but firm demand for commercial vehicles helped erase losses in the region, it said.

Net profit fell 1.8 percent to $534.7 million as the Tokyo-based truck maker booked one-off losses for warranty fees, the dismantling of a former domestic factory and a rise in tax burden at overseas subsidiaries.

Isuzu's domestic rivals Hino Motors Ltd. and Nissan Diesel Motor Co. have also reported improved operating earnings and revenues for last business year, fueled by healthy Japanese truck demand.

Isuzu offered a cautious outlook for the current business year to end-March 2007, citing high crude oil prices and uncertainty in U.S. consumers' spending patterns, and it forecast a tame 2.6 percent rise in operating profit to $843.4 million.

Isuzu expects net profit to rise back to $589.5 million, up 10.3 percent.

"We expect a very tough year this year due to the strong yen and high prices of materials and oil," President Yoshinori Ida told a news conference. "But we will aim for a fourth consecutive year of record earnings by actively exploring new markets."

Under a three-year strategy through March 2008, Isuzu has targeted an operating profit of 100 billion yen as it rationalizes its business and gradually shifts the weight of its business to overseas markets.

Isuzu now makes 43 percent of its revenue in Japan, where it expects truck demand to start declining beyond this business year. Through aggressive expansion overseas, Isuzu said it expects to raise the portion of revenue earned abroad to as high as 65 percent in the next phase.

Analysts cheered the purchase last month of most of GM's 7.9 percent stake in Isuzu by Japanese trading houses Mitsubishi Corp. and Itochu Corp. -- both long-time business partners of Isuzu's -- but have said it would eventually need a strategic partner in the sector to stay competitive.

All three of Japan's other major truck makers are allied with a partner now, after Nissan Diesel's link-up with Sweden's Volvo AB in March.

Source: Automotive news, June 12.
Current sales, production, and employees (all manufacturers worldwide): http://www.autonews.com/assets/PDF/CA684661.PDF

TOKYO -- General Motors and Japanese truck maker Isuzu Motors Ltd. said on Tuesday they planned to jointly develop next-generation pickups and other models, aiming to boost efficiency and cut costs. GM and Isuzu, which ended a 35-year equity alliance in April, worked together in the early development stage of the current model Chevrolet Colorado and Isuzu D-Max pickups.

By setting up a 50-50 venture, LCV Platform Engineering Corp., the companies plan work together in more areas to develop a model for emerging markets such as Southeast Asia, South America and Africa, an Isuzu spokesman said. While Isuzu will be responsible for engineering, GM will use the platform to develop other models such as passenger cars and SUVs, he added. The venture, capitalized at $874,000 (100 million yen), will be based at Isuzu's engineering center in Fujisawa, south of Tokyo. It is scheduled to be fully operational by September.

Isuzu expects to increase production of pickups by more than 9 percent in 2006 to 350,000 unit
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Isuzu doesn't seem to be in this one, but I thought it was still a joint powerplant.
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GM will significantly revamp the emissions system of the Duramax, which also is used in full-sized vans and commercial vehicles. GM Powertrain spokeswoman Susan Garavaglia said the diesel will meet the 2007 regulations with:

* A new variable geometry turbocharger.
* Enhanced exhaust gas recirculation.
* Closed crankcase ventilation system.
* Changes to the exhaust system that include an oxidizing catalytic converter to clean NOx emissions and a particulate filter to lower soot.

Diesel particulate filters, first used in Europe in 2005 on Peugeot and Citroen vehicles, will land in America for the first time on diesel versions of the Mercedes-Benz E320 and the Jeep Grand Cherokee coming this fall. The new Duramax developed to meet the emissions regulation won't be available until Jan. 1.

GM's upgrades won't be cheap. The particulate filter and oxidizing catalytic converter, for example, could add at least $3,000 to the cost of building the truck. The estimate is based on hardware costs for older diesels that have been retrofitted with filters and related equipment. GM won't confirm the figures.

Demand is strong for GM's diesel trucks. Capacity from the lone Moraine, Ohio, plant that builds the engine is limited to about 180,000 units a year. Because the Duramax has built a reputation for being smooth, quiet and reliable, GM sells out of diesel trucks each year and gets close to sticker prices, which start at about $30,000 and can go as high as $50,000.

Fast Facts about Isuzu America -- includes page on every make/model they've made (only 2 Rodeo models, if you don't count the sport) and 2 Troopers (with 3 series of troopers)
http://www.isuzunewsbureau.com/download.php?id=319&type=file


Isuzu Motors America, Inc., announced today that it will make significant improvements to its line of award-winning pickups and SUVs for the 2007 model year-while keeping prices unchanged from 2006. The i-280 and i-350 Pickups are replaced by the i-290 and i-370, a nod to their new, more powerful 2.9- and 3.7-liter engines, while the Ascender sport utility vehicle gets a new tire pressure monitoring system and a variety of appearance upgrades.

Wayne likes this part:
ò 3.7-liter inline five-cylinder engine replaces 3.5-liter, increasing horsepower to 242 hp (from 220) and torque to 242 ft.-lbs. (vs. 225)
My Isuzu Built 3.5 DI gets 250 hp, 250 ft-lbs torque, and better mileage. Go to Isuzu engines! (and probably better emissions)
Full press release here:
http://www.isuzunewsbureau.com/download.php?id=321&type=file

EVERY 2006 ISUZU RECOGNIZED FOR LOW COST BY INTELLICHOICE
(Isuzu press release doesn't mention there's only two)
Full press release here: http://www.isuzunewsbureau.com/download.php?id=311&type=file

Intellioice, a Campbell, California-based automotive information company that studies the ongoing costs of vehicle ownership, has recognized the 2006 Isuzu Ascender 7-Passenger, Ascender 5-Passenger, i-350 Pickup and i-280 Pickup as among the best in their classes for low cost.

The Ascender 5-Passenger 2WD was a "Top Winner" in two different categories among utility vehicles, besting all others in the segment for lowest fuel costs and lowest operating costs. It was also named a "Smart Choice" for lowest depreciation and lowest ownership and repair costs. The Ascender 5-Passenger 4WD earned the "Smart Choice" designation in five different categories-depreciation and fuel, operating, ownership and repair costs.
ISUZU MOTORS AMERICA RE-UPS WITH (Where's my corporate discount?)
Full press release here: http://www.isuzunewsbureau.com/download.php?id=313&type=file

Isuzu Motors America, Inc., and Raytheon Professional Services LLC (RPS), a subsidiary of Raytheon Company, have signed a contract for outsourced learning services. This contract extends a previous five-year contract between the two companies.

The services to be provided under the new contract include design, development and delivery of technical and fixed operations training to Isuzu's service personnel at Isuzu light vehicle dealerships throughout the United States. The training will be made available through web-based simulation courses and highly interactive, hands-on workshops. RPS will also implement a certification program with web-based assessments for fixed operations personnel.

sorry to blow your imaginary castle, Wayne, but it's only 246 ft-lbs <img src="/forums/images/graemlins/smile.gif" alt="" />

LOS ANGELES -- General Motors' plan to cancel its mid-sized SUVs spells more trouble for Isuzu in this country. Isuzu's five-seat Ascender, one of only two models it sells here, is derived from GM's mid-sized SUV platform.

GM and supplier sources have confirmed that the mid-sized SUV platform will be dropped in a few years, but no date has been set. GM has not commented on the matter. Also produced from the platform are the Chevrolet TrailBlazer, GMC Envoy, Buick Rainier and Saab 9-7X.

The demise of the Ascender would leave Isuzu's U.S. dealers with only the i-series pickup, which is derived from GM's small-pickup platform.

A GM source, who did not want to be identified, says there are no plans to give Isuzu a version of GM's new mid-sized crossovers. The source doubts that Isuzu will get a version of GM's redesigned small pickup, scheduled for the 2011 model year, to keep the i series in Isuzu's lineup.

So it looks as if Isuzu will run out of light vehicles to sell in the United States in 2010 at the latest.

Isuzu has not given its dealers any indication that it has new products on the drawing board.

"I have no comment on new product," Isuzu Motors America spokesman Chip Letzgus said. Asked about GM's plans to discontinue the TrailBlazer platform, he said that Isuzu "will cross that bridge when we get to it."

While Isuzu's light-vehicle business is declining, the company's commercial-vehicle business remains solid in the United States. Last year, it sold 15,787 medium- and heavy-duty vehicles here, up 0.5 percent.

Rebecca Lindland, senior market analyst for market researcher Global Insight, has Isuzu out of the light-vehicle business in the United States by the 2011 model year.

"We have not given them the next-generation Colorado or any of the new GM crossovers, and there are no suppliers who tell us they are bidding on Isuzu business," she says.

Isuzu's approximately 290 dealers are discouraged. They sold just 4,718 vehicles through June, a 37.9 percent decrease from year-ago numbers. The Ascender accounted for 58.5 percent of those sales.

Dealer Scott Lasher gave up his franchise near Sacramento, Calif., in April. In its place is a Kawasaki motorcycle store. "We were losing money on Isuzu," he says. "We found a better use for it."

Mike Donohue, owner of Big Red Isuzu in Norman, Okla., says his store is surviving on service work.

Isuzu had 436 dealerships at the beginning of 2004 and 294 in January 2006.
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LOS ANGELES -- Isuzu plans to add two trim lines to its lineup of pickups, offering customers four small pickup options for the 2007 model year.

The new trim lines are the i-370 two-wheel-drive extended cab and the i-370 two-wheel-drive crew cab. Both trim lines will be powered by a 3.7-liter, five-cylinder engine making 242 hp and 242 pounds-feet of torque. A four-speed automatic transmission is standard.

It will be the first time a five-cylinder has powered Isuzu's extended-cab model. The i-290 extended cab is equipped with a 2.9-liter four-cylinder engine.

The i-370 two-wheel-drive pickup joins the i-370 four-wheel-drive version. The trucks are derived from GM's small pickup platform.

Terry Maloney, president of Isuzu Motors America, said in a statement: "Some of our customers have said they needed the room of a crew cab but without the off-highway capability of four-wheel drive.

"And some of our customers have asked for the extra power of a five-cylinder in the versatile extended-body style."

Also for 2007, Isuzu increased the engine displacement of its i-290 model to 2.9 liters, from 2.8 liters. Horsepower was increased by 10, to 185. Torque is 190 pounds-feet, compared with 185 for the 2006 model.

Engine displacement on the 1-370 is 3.7 liters, compared with 3.5 liters for the 2006 model. Horsepower is 242, up from 220, and torque is up 17 pounds-feet, to 242 pounds-feet.

Isuzu sells only two models in the United States, the small pickups and the mid-sized five-seat Ascender, another GM derivative.