Isuzu to Boost Production Capacity in Thailand

Press Release

Isuzu Motors Ltd. (Isuzu) is pleased to announce that it will invest in boosting production capacity for its pickup trucks and will reorganize production operations in order to keep pace with their favorable sales in Thailand and realize an increase in units manufactured in line with the medium-term business plan.

Adopting the scheme of efficiency-driven, "thoroughly step-type capacity-boost investment" as a basic concept, the company plans to launch to boost in capacity for production of vehicle assembly and related components including engines and transmissions with JPY 4 billion at first, then conduct additional investment with thorough consideration to surroundings in order to minimize the business risk.

A total scale of investment is projected to JPY10 billion by 2007.

More specifically, Isuzu will seek to raise its production capacity for pickup trucks by transferring the truck assembly lines from the Samron Plant at Isuzu Motors Co. (Thailand), Ltd. to Gateway Plant that is currently conducting knockdown component exports, and then by utilizing the resultant vacant space at Samron. In 2004 Isuzu Thai domestic vehicle sales reached 150,000 units level, includes approximate 140,000 pickup trucks, and then its production capacity is projected to reach 200,000 units only pickup trucks to meet the market demand in Thailand.

As in the past, the Company will handle exports of pickup trucks from Thailand to other countries by consigning their production to GM Thailand. Isuzu production capacity in Thailand will be 300,000 units in 2007 consisting of 50, 000 units of the export vehicles, another 50,000 units of knockdown component exports in Gateway, and 200,000 vehicles of domestic sales as mentioned above.

Isuzu has secured Thailand's top market share in the sales of commercial vehicles for the past 22 consecutive years and 9 consecutive years for pickup trucks as well.