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Isuzu Surrenders

Company gives up on U.S. market after 28 years

By Joe Benton
ConsumerAffairs.com

February 4, 2008

Isuzu plans to now focus on more profitable commercial truck sales in the U.S.

The decision gives dealers for Isuzu Motors America Inc. just one year to clear their inventories of five-seat Ascender SUV and small Isuzu pickup trucks. The company said that quitting the U.S. passenger vehicle market would cost about $37 million over two years, including fees to franchised dealers.

Isuzu's pickups and SUVs have a reputation for dependability and are less expensive than the competition. However, when the company stopped selling cars in 1993 and offered only trucks and SUVs and U.S. sales dropped below 100,000 units for the first time since 1984.

The decision leave the U.S. passenger vehicle market was based in part on the fact that the two models Isuzu currently sells in the U.S., the Ascender SUV and the i-series pickup will no longer be made and the company has no plans to design a new vehicle.

Isuzu will offer U.S. vehicle dealers the option to remain as service-only dealers, according to a company statement. There are 201 Isuzu dealers in the U.S.

"Our parts and service operation will remain fully functional," Terry Maloney's President of Isuzu America said in the statement said. "We expect the vast majority of our dealers will continue as service-only dealers."

Isuzu becomes the second Asian automaker to abandon the U.S. market. Korean car company Daewoo stopped selling in the U.S. in 2002 amid bankruptcy troubles.

Adios Joe

In the 28-year run in the U.S. automotive market, Isuzu sold U.S. consumers the Hombre, Amigo and Rodeo as company ran advertising starring the somewhat questionable salesman Joe Isuzu.

Actor David Leisure played the salesman dressed in a plaid sports coat and making outlandish claims for the brand. Known as Lying Joe, he made outrageous claims about vehicle performance even as his statements were contradicted and corrected in captions at the bottom of the commercial frame.

Last year Isuzu spent just $2 million during the first nine months on advertising. In 1998 the company spent $137 million on advertising.

The Japanese automaker recorded its best year for U.S. sales in 1986 selling 127,630 cars and trucks. Isuzu's sales in the U.S. accounted for just 7,098 of the 16.1 million new vehicles sold in 2007.

General Motors Corp. bought a 37.5 percent interest in Isuzu Motors in 1971. GM has now lost interest in Isuzu and sells only two models, the Ascender SUV and a small pickup. GM manufactures the two vehicles for Isuzu.

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