Isuzu Posts $685 Million Loss

TOKYO, November 25,2002 The AP reported that Isuzu Motors posted a wider loss of 84 billion yen ($685 million) for the first half as sales dropped in two key markets, the United States and Japan.

The loss announced Monday was bigger than the 23.6 billion yen loss Isuzu posted for the same period a year ago.

Isuzu's sales slipped 24 percent to 632 billion yen ($5 billion) for the six months through September from 830 billion yen a year ago. Truck sales suffered in Japan, while sport utility vehicle sales lagged in the United States, it said.

It sold 139,412 vehicles worldwide in the first half, a 13 percent drop from 159,940 for the same period a year ago.

Isuzu, which is the Japanese affiliate of General Motors Corp. of the United States, maintained its full-year forecast of a loss of 170 billion yen ($1.4 billion) on sales of 1.27 trillion yen ($10 billion).

Last month, Isuzu slashed its outlook for the fiscal year ending in March 2003 to account for heavy losses on restructuring, including withdrawing from the money-losing joint venture making sport utility vehicles in Lafayette, Ind., for North American consumers, ending the 13-year partnership.

Isuzu, which is 48.5 percent owned by General Motors, will sell its entire 49 percent stake in Subaru-Isuzu Automotive Inc., to its partner Fuji Heavy Industries, also a GM affiliate.

At that time, Isuzu said it will receive fresh investments from General Motors as part of a new revival plan to cut costs and boost profitability, taking advantage of its alliance with GM.