Isuzu To Up Monthly Small Truck Output At Fujisawa By 30%

TOKYO June 17, 2003; Dow Jones reports that Isuzu Motors Ltd. plans to boost monthly output of small trucks at its Fujisawa plant by more than 30% from mid-July before stricter regulations on diesel engine gas emissions take effect later this year, a company spokesman said Wednesday.

Isuzu, which is stepping up efforts to restructure under the guidance of General Motors Corp. (GM), will increase output of one of its small truck models to 10,000 units a month from 7,500.

The model, which Isuzu sells as the "Elf," has a loading capacity of two to three metric tons. It also supplies the model to Nissan Motor Co. (NSANY or 7201) and Nissan Diesel Motor Co. (J.NDM or 7210) on an original equipment manufacturing basis. General Motors holds a 12% stake in Isuzu.

Demand for replacement small trucks is growing ahead of the October implementation of tougher regulations on diesel engine gas emissions in some major cities including Tokyo.

From July 14, the company will switch to two work shifts from the current one, partly using some of the 350 staff made redundant as a result of its plan to discontinue recreational vehicles and pickup trucks at the plant later this month.

Workers at the small truck production line have also agreed to cancel some of their summer vacation.

The plan may also help the struggling truck maker. The spokesman said Isuzu's domestic sales for the fiscal year through March 2004 will probably be better than the firm's original outlook, but he said it was too early to give a revised numerical target.

Earlier this year, Isuzu said it aimed to sell 72,000 vehicles in Japan in the year through March, up 16% from last fiscal year.

In trading on the Tokyo Stock Exchange Wednesday, Isuzu shares drew buying interest on the view the output boost reinforces the likelihood of the struggling truck maker meeting its operating profit target for the year of Y50 billion. The issue was up 9.6% at Y183 by the midday break.

The company expects to return to profit this fiscal year with the completion of its rehabilitation plan, after posting losses for four business years in a row.