Isuzu moving sport utility vehicle production to North America
TOKYO -- Isuzu Motors, a Japanese automaker partly owned by General Motors Corp., plans to move all production of its sport utility vehicles to North America beginning with next-generation models, a company spokesman said Wednesday.
Momoki Tsujimura, the spokesman, however, denied a report Wednesday in the Nihon Keizai, Japan's leading business daily, that the production in Japan will end by March 2004 as Isuzu hasn't yet decided when to end the current model.
Isuzu, which is trying to turn around its deteriorating business, still produces the Bighorn recreational vehicle in Japan. The model is sold as the Trooper in the United States.
Bighorn's last major remodeling was a decade ago. Isuzu has already decided to switch to a General Motors vehicle once the current model is discontinued.
With sales in Japan lagging, Isuzu is also converting its dealerships here to General Motors outlets.
After recording two straight years of losses, Isuzu posted a loss of 23.56 billion yen ($187 million) for the fiscal half ended in September. It is forecasting a loss for the fiscal year ending in March.
Isuzu is cutting thousands of jobs, closing a truck plant and selling its headquarters building in Tokyo to raise cash. Isuzu has been in talks with its Detroit-based partner to come up with a strategy to boost profitability. GM owns 48 percent of Isuzu.
Isuzu manufactures vehicles in Indiana in the United States in a joint venture with Fuji Heavy Industries, the maker of Subaru cars and another Japanese automaker partly owned by General Motors.
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