Isuzu To Assemble Trucks in Ukraine?

TOKYO December 16, 2003; The AP reported that Japan's Isuzu Motors is considering assembling trucks in Ukraine in an effort to develop new overseas markets, a company spokesman said Tuesday.

The move could lead to the establishment of the first production base set up by a Japanese truck manufacturer in that country.

The potential move reflects Isuzu's efforts to develop new overseas markets with high growth potential in areas such as Eastern Europe and the Middle East.

Analysts and automakers expect Japan's truck market to shrink once domestic demand for more environmentally friendly diesel engines fades. Japanese demand for trucks is now strong due to the recent introduction of stiffer exhaust restrictions.

Isuzu is considering exporting truck parts to a Ukrainian bus maker, Holding Bogdan, for the assembly of small and mid-size trucks, a spokesman told Dow Jones Newswires.

The Japanese automaker formed an alliance in 1999 to supply bus parts to Holding Bogdan.

The Nihon Keizai Shimbun, Japan's largest business daily, reported Isuzu will start exporting parts to Holding Bogdan as early as spring. The newspaper added Isuzu foresees sales of 1,000 trucks in the first year.

The Isuzu spokesman denied the Nihon Keizai report, saying nothing specific had been decided.

An affiliate of General Motors Corp., Isuzu currently has overseas production bases in China, Thailand, Indonesia and the Philippines.