2009 was a year full of brand changes – those changes came in many forms including brand sales, brand deaths, new partnerships and now possibly the end to another joint venture. GM and Isuzu have long shared a partnership for truck development, but with the truck market down Isuzu may be looking for a way out.
Earlier this year Leftlane reported on the ending of the joint venture between GM and Toyota with the closure of the California NUMMI plant, and of course a few years ago GM had partnerships with both Suzuki and Fiat- both gone now as well. Now GM’s light-truck partner, Isuzu, is questioning whether or not it is in its best interest to continue operations at both the U.S.-based DMAX diesel plant, and their joint venture plant in Poland.
Isuzu had been offering re-badged versions of the Chevy Colorado, but as of the end of January this year Isuzu officially pulled out of the North American market of selling vehicles wearing its name. Isuzu faced dismally low sales volumes that didn’t break 8,000 units on an annualized volume – making the effort a losing business.
Now GM is facing a 34 percent drop in sales for the Silverado pickup that utilizes the diesel engines produced at the DMAX plant, and forecasting plant capacity to be at only 30 percent for next year. With such a low demand for the DMAX engines, Isuzu is trying to evaluate whether or not continuing production alongside GM is in its best financial interest.
“Our venture in North America serves large-size vehicles, and there is　definitely a question mark on that market,” Isuzu president Susumu Hosoi said. “I want to ask GM what their thinking is.”
By contrast, if you ask GM what their thoughts are on the plant and the future of the joint venture, you get a different answer, “There are no plans to change the relationship with Isuzu in regard to the DMAX plant,” Tom Read, a GM spokesman said in an e-mail.
Isuzu president Hosoi also said that they intend to review the joint venture in Poland as well.
