Isuzu job cuts set to boost UK market development
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• by Brian Weatherley and Colin Barnett
Japanese light truck builder Isuzu has revealed a drastic restructuring plan in attempt to stem its current losses. The most severe part of the plan is to cut around 25% of ifs 38,000strong workforce over the next three years. It will greatly reduce production in Japan, with sports utility production going to the United States and pickups to Thailand.
The range of vehicle platforms is expected to be rationalised, falling from the current seven to three.
The cutbacks at lsuzu result from General Motors' growing dissatisfaction with the Japanese vehicle manufacturer. GM currently owns some 49% of Ism and new boss Randall J Schwarz is keen to get the company back into profit.
While Isuzu has kept tight-lipped about the potential winners following its massive job-cutting programme, Commercial Motor understands that it could benefit those European markets where Isuzu has recently enjoyed success.
These include Ireland, Portugal and the UK, with the company releasing more capital for greater local investment.
Conversely, the company is likely to cut back its involvement in less-than-profitable business in Poland.
However, the retrenchment is unlikely to accelerate the arrival of heavier models in the UK. Isuzu Truck UK boss Nikki King has confirmed that the next major product jump above 7.5 tonnes will be with Isuzu's F Series, which is due to make its debut at 12 tonnes GVW in May 2002 at the next CV Show.
Full production is scheduled to begin in September 2002. "It's all about getting the right R&D" says King.