Isuzu rules out buying GM's medium-duty truck business

[nadepalma]

SOURCE: AutoNews.com

Isuzu sees profit pressure, no GM truck deal
September 24, 2008 - 7:00 am ET

HANOVER, Germany (Reuters) -- Japanese truckmaker Isuzu Motors Ltd. will struggle to hit its full-year net profit target and has ruled out buying General Motors' mid-sized trucks business, President Susumu Hosoi told Reuters.

"It will be difficult to achieve the net profit target but we will do everything possible to achieve it," Hosoi said in an interview on Wednesday at the IAA truck fair in Germany. He cited an expected downturn in all major truck markets.

Isuzu has said it aims to make a net profit of 85 billion yen ($801.8 million) in its current business year that runs until March 31.

Asked about a newspaper report last Friday that Isuzu could buy GM's mid-size trucks operations, Hosoi said: "There will be no such acquisition happening."

The two companies might be able to cooperate in this field, but there had been no talks about this, he said.

Shares in Isuzu, which is a former GM affiliate, rose 11 percent on the report, even though it said it had received no such offer from GM.

MORE HERE

[nadepalma]

The two companies might be able to cooperate in this field, but there had been no talks about this, he said.

Is Isuzu's commerical operations also leaving the US or just their retail operations?

If the entire company is leaving, it may be leaving behind a lucrative market for box trucks, etc. GM could take those products, badge them as GMCs, and sell them through their own medium-duty operations.

I know they've done this in the past before and it would be a win-win if Isuzu's goal is to leave the market entirely.

[stevecmh]

wow.. they cant get anyone to buy them..

I hope they keep building them.. We use the TopKicks for our ambulances.. very nice

[mbukukanyau]

GM should grow this business, not get rid of it. Add diesels, V6 diesels, V8, and cab foward design. Go after the global market.
Why is GM afraid of growth.
Also, since no one wants Hummer and no one wants this business, GMC should step in and grow this business.
GMC as well as Chevy Trucks could be a good alternative to Isuzu.

[Caleb02]

i guess isuzu will be buying all og GM instead, as they do not have a passenger business in north america now

[Kennyboy]

Nobody wants to buy. Maybe the Indians or the Chinese?

[rsbaker]

Good! I know GM could probabaly use the Cash now but I think it is very short sighted to sell the truck business. I don't hink they should sell Hummer either! Overhaul it but don't sell it.

[Caleb02]

i will buy it from gm for just $1 and i will pay them for it out of any "profits" that i make. ofcourse GM will only get paid if i make a profit of 1 trillion dollars or more.....

[AndrewGS]

Originally Posted by Caleb02

i will buy it from gm for just $1 and i will pay them for it out of any "profits" that i make. ofcourse GM will only get paid if i make a profit of 1 trillion dollars or more.....

Are you 7 years old?

[Stéphane Dumas]

Maybe GM should do a new strategy for their medium-duty trucks market. How about made it in a joint-venture with another manufacturer? I don't know how long the Blue Diamond joint-venture between Ford and Navistar/International will do since Ford and Navistar are now in cold war. Imagine a joint-venture between GM and Ford for the medium-truck duty market (or GM-Chrysler. With Dailmer selling the remaining assets of Chrysler to Cerberus, Dodge might find a partner for the commercial medium trucks)

[MisterMe]

Originally Posted by Stéphane Dumas

... Imagine a joint-venture between GM and Ford for the medium-truck duty market (or GM-Chrysler. With Dailmer selling the remaining assets of Chrysler to Cerberus, Dodge might find a partner for the commercial medium trucks)

You do understand that Ford sold its medium- and heavy-duty truck business to Daimler more than a decade ago, don't you?

[Stéphane Dumas]

Originally Posted by MisterMe

You do understand that Ford sold its medium- and heavy-duty truck business to Daimler more than a decade ago, don't you?

it was the heavy-duty business (the L-series trucks) to Dailmer (who was rechristened as "Sterling"), Ford keep going defacto in the medium-duty by using the Blue Diamond joint-venture where they use the Navistar truck chassis with F-trucks bodies cab

[C/K Man]

Originally Posted by Stéphane Dumas

it was the heavy-duty business (the L-series trucks) to Dailmer (who was rechristened as "Sterling"), Ford keep going defacto in the medium-duty by using the Blue Diamond joint-venture where they use the Navistar truck chassis with F-trucks bodies cab

That is correct, Ford sold their heavy duty truck line to Freightliner (Daimler) in 1996, but continued to build medium trucks until 2003, when they formed 'Blue Diamond' with International. The Blue Diamond Ford 650 and 750 are really International 4400 chassis with Ford Super Duty cabs, and a Cummins or Caterpillar diesel. From what I hear, Blue Diamond will come to an end in late 2009. It appears likely that Ford will drop the 650 and 750 at that time.

[MisterMe]

Originally Posted by Stéphane Dumas

it was the heavy-duty business (the L-series trucks) to Dailmer (who was rechristened as "Sterling"), Ford keep going defacto in the medium-duty by using the Blue Diamond joint-venture where they use the Navistar truck chassis with F-trucks bodies cab

Thanks for the clarification. However, I see an awful lot of medium duty Sterling trucks in the old Ford sheetmetal. The point is that Ford ain't putting that toothe paste back into that tube.

[dederer]

If your in the automotive business it would make perfect sense to keep the medium truck brand. I think gm is out of cash and its targeting the light duty trucks and non commercial (cars) markets. Its too bad, gm was such a great company but is having issues.