Isuzu looks for truck plant site
Land in Alabama, but demand in Latin America
Hans Greimel, Automotive News, September 10, 2007

TOKYO -- Alabama has the land, but Latin America has the market. ThatÆs the quandary facing Isuzu Motors Ltd. as it ponders where to build an assembly plant for commercial vehicles.

Isuzu paid $7.8 million for a warehouse and land in Birmingham, Ala., in December. But groundbreaking is on hold because Isuzu is weighing the possibility of setting up shop in Mexico instead. A factory there would put production closer to what Isuzu views as promising markets in Central and South America.

ôWeÆre still thinking about whether North America is better or whether Mexico is better,ö Isuzu President Susumu Hosoi said here last month. He spoke while unveiling his companyÆs midterm business plan through 2011.

Isuzu says a new plant somewhere in the Americas is part of its three-year growth strategy. The plant is widely expected to manufacture IsuzuÆs N-series commercial vehicles, which have a payload capacity of three to four tons.

Separately in North America, Isuzu plans to carry on with its GM partnership to make SUVs and pickups, says the companyÆs senior executive officer, Masanori Katayama. IsuzuÆs entire light-vehicle lineup in the United States -- the i-series pickup and the Ascender SUV -- is assembled by GM.

Under the midyear business plan, Isuzu hopes to increase revenues 21 percent to Ñ2 trillion ($17.4 billion) over the next three years. The company forecasts operating profit of Ñ100 billion ($869 million) for this fiscal year ending March 31, 2008.