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Isuzu Drops Out of the U.S. Market; Who's Next?

Isuzu Drops Out of the U.S. Market; Who's Next?

By Marty Padgett's avatar Marty PadgettMarty Padgett January 30th, 2008

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Isuzu's long battle to stay in the U.S. market ends next year, as the Japanese automaker announced today that it would stop selling new vehicles in the U.S. as of January 31, 2009.

Isuzu's withdrawal has been expected for years. In the early 1990s, the company sat at the forefront of the truck market with its Trooper sport-utility vehicle. But troubles in its home market--and a lack of cash to develop more sport-utes and crossovers like the ill-fated Axiom from 2002--hamstrung the brand, which resorted to selling rebadged GM pickups and sport-utes and halting all passenger-car sales as it tried to find its footing.

The Wall Street Journal points out that in 2007, Isuzu sold only 7906 vehicles here--roughly four days' worth of production for the Ford F-Series pickups.

The final death knell for Isuzu likely came as GM declined to provide it with a replacement for the i290 and i370 pickup trucks, which are based on the Chevrolet Colorado, and as GM is set to cancel the mid-size SUVs like the Chevrolet TrailBlazer that provided the clone donor for the Isuzu Ascender.

"It has always been our intention to remain in the U.S. market," the Journal quotes Terry Maloney, president of Isuzu's North American operations. "However, we were unable to secure any commercially viable replacements for these vehicles."

It has inventory to sell for the year ahead, and Isuzu is also promising to honor all warranties and roadside assistance programs.

Isuzu's departure isn't any surprise. But are there other automotive brands that don't serve a purpose? And as new-vehicle sales are expected to take a tumble again in 2008, which companies won't be able to weather the storm? Tell us in a comment below.

Isuzu to End Car Sales In North America in 2009 - WSJ.com Enlarge Photo Isuzu's long battle to stay in the U.S. market ends next year, as the Japanese automaker announced today that it would stop selling new vehicles in the U.S. as of January 31, 2009. Isuzu's withdrawal has been expected for years. In the early 1990s, the company sat at the forefront of the truck market with its Trooper sport-utility vehicle. But troubles in its home market--and a lack of cash to develop more sport-utes and crossovers like the ill-fated Axiom from 2002--hamstrung the brand, which resorted to selling rebadged GM pickups and sport-utes and halting all passenger-car sales as it tried to find its footing. The Wall Street Journal points out that in 2007, Isuzu sold only 7906 vehicles here--roughly four days' worth of production for the Ford F-Series pickups. The final death knell for Isuzu likely came as GM declined to provide it with a replacement for the i290 and i370 pickup trucks, which are based on the Chevrolet Colorado, and as GM is set to cancel the mid-size SUVs like the Chevrolet TrailBlazer that provided the clone donor for the Isuzu Ascender. "It has always been our intention to remain in the U.S. market," the Journal quotes Terry Maloney, president of Isuzu's North American operations. "However, we were unable to secure any commercially viable replacements for these vehicles." It has inventory to sell for the year ahead, and Isuzu is also promising to honor all warranties and roadside assistance programs. Isuzu's departure isn't any surprise. But are there other automotive brands that don't serve a purpose? And as new-vehicle sales are expected to take a tumble again in 2008, which companies won't be able to weather the storm? Tell us in a comment below. Isuzu to End Car Sales In North America in 2009 - WSJ.com

Tags: Industry

Posted in: 2008, Isuzu, Ascender



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Responses (20 total)

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  2. 2

  1. By Mark #1, Posted: 1/31/2008

    No surprise. Let's not forget that they also pulled out of the Japanese market a few years ago. Yes, that's right, Isuzu does not sell any light vehicles in their own country. They only sell light vehicles in the U.S. and developing nations like Thailand.

  2. By Frank W. #2, Posted: 1/31/2008

    Who is surprised? Any company relying on GM North America to develop product to fill thier showrooms is destined for failure...Long live Joe Isuzu and the brief period of innovation with the first generation Impulse.

  3. By OblioA #3, Posted: 1/31/2008

    ISUZU hasn't sold home-grown ISUZU's for many years. It has nothing to do with Japanese vehicles. This is more like GM dropping a slow-selling truck brand.

    Subaru will probably be next if they don't get their fuel-efficiency up to snuff.

  4. By Eric T. Simon #4, Posted: 1/31/2008

    I believe Mitsubishi is next. I'm not seeing very many of the new generation Eclipse on the roads. The latest Evo is pretty hot, but would anyone really miss the Lancer, the Gallant, or the "me too" Outlander?

  5. By  Wayne K #5, Posted: 1/31/2008

    I am not shocked at all to hear this. I mean they sell rebadged GM trucks and SUV's that look worse than the GM vehicles they are based on. THe Impulse was a great, fun car, but those days are long gone for Isuzu. As far as who's next, that a tough one, but I would venture that Mercury is on borrowed time with Ford.

  6. By Cyrus EM #6, Posted: 1/31/2008

    Most manufacturers in the US are in decent standing and not willing to leave. The weakest is Mitsu but even it has been able to survive. It's the new commers who will be in a tough spot in the future: Chinese and Indian wannabees. There is no doubt some will make it an strive but there will be a lot of "collectible" pamphlets when all is done...

  7. By  Marty Padgett #7, Posted: 1/31/2008

    I tend to agree with you, Cyrus. When you have sales of 15.5 million annually - or lower - it's going to be doubly hard to convince people that Chinese cars are a good bargain, or for them to get traction in the marketplace unless a major brand goes out of business. From the other comments here, Mitsubishi, Mercury and Subaru seem to be out there - I'm going to suggest one that's not so obvious, but I still think Pontiac is in a dangerous spot. If the G8 isn't a big success, it's hard to see GM justifying more investment in a brand that was going to be mostly rear-drive and V-8 cars. With the new CAFE rules coming, the whole brand image for Pontiac seems to be in trouble - and while they have to keep Cadillac going in that vein, I'm not sure GM can afford both car brands plus the big trucks and meet the 35-mpg bogey.

  8. By brian #8, Posted: 1/31/2008

    I have to agree that Mitsubishi is very weak - as are Mercury and Pontiac.
    I'd also suggest that Buick and Saab aren't that far behind...

  9. By craig #9, Posted: 1/31/2008

    What about Saab? Dont they re-badge Subaru's??

  10. By Robb #10, Posted: 2/1/2008

    Yes, Saab will be my guess too. Basically any imported brand under GM will not fare well. Look what almost happened to Subaru until GM sold a big chunk. It seems as if Gm does this on purpose sometimes, buy brands, don't invest anything, re-badge their own models and sell it to the brand's loyol customers, then decline any product telling them that they're not profitable. Any manufacturer that's bought by GM loses all their identity and their products become stagnant. GM's-kick them while they're down strategy. As long as their brands have more market share, they could give two shits about "imported brands".

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