Sunday, October 5, 2008

Isuzu plans U.S. truck comeback

2006_Isuzu

Isuzu Motors Limited is planning to build a plant for mid-size trucks in Alabama, according to Nihon Keizai Simbun, a Japanese newspaper.
The Japanese truck maker recently purchased land for $7.8 million in Birmingham, which was previously occupied by a warehouse of Del Monte Foods, the story said.

The company expects to start operation of the new plant in 2010 with approximately 5000 units slated for initial annual production. There was no information about the specific models that will be produced at the new plant.

Isuzu once had a joint venture in Indiana with Fuji Heavy Industries, the maker of Subaru automobiles, but sold out to Fuji in 2003. It was also affiliated with General Motors, which ultimately sold its entire 7.9% stake in Isuzu.

Isuzu's current truck sales in the U.S. amount to about 27,000 units of a truck which is a version of GM's compact pickup.

[Source: The Daily Auto Insider]

Federal loans could breathe new life into GM's RWD vehicles

Pontiac+G8Just this week the $25 billion federal loan package was approved for the car industry, and already insiders are hinting that the extra cash could revive plans for GM's rear-wheel drive Alpha platform. Movement toward more RWD models had been shelved on concerns over spending and efficiency regulations earlier this year, despite the large investments that had been made in that direction.

Bringing the Alpha platform back might help recuperate some of the R&D money that would otherwise have been lost on the project. If the reports prove true, GM won't just be barging forward with an outdated model of RWD excess, according to GM Inside News. Instead, they would be working to make the Alpha platform more flexible, so that it can accommodate a whole range of vehicles from compact coupe to full-size sedan. That's a smart business move in terms of maximizing the investment they've already made, despite the minor efficiency and cost issues of RWD designs when compared to easier-to-package FWD cars.

Last year, speculation about a possible RWD Pontiac G6 began to build, but the plan was later dashed on the grounds of cost and economy issues. A flexible Alpha platform vehicle may yet revive those hopes as well, however, since the G6 would be within the scope of vehicle sizes that are reportedly being considered. Similarly, the recently speculated end of the Kappa platform may see a migration to Alpha as well, meaning the Pontiac Solstice/Saturn Sky/Opel GT line of cars may yet live on as well. readmore