[Company analysis] Isuzu Motors Ltd. (いすゞ自動車)

「Isuzu Motors Ltd. (いすゞ自動車)」is an automobile manufacturer that mainly produces commercial vehicles such as trucks and buses. It is also the company with the longest history among Japanese automobile manufacturers. From 1971 to 2006, it was a subsidiary of「General Motors」. The number of consolidated employees is approximately 37,263.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Isuzu Motors Ltd.
Company name (Japanese)	いすゞ自動車
Date of establishment	April 1916
Headquarters location	〒140-8722 東京都品川区南大井六丁目26番1号
Capital	40,644
Consolidated sales	2,149,168
Consolidated operating profit	176,781
Consolidated total assets	2,130,894
Consolidated capital	1,116,335
Capital adequacy ratio	52.4%
Consolidated number of employees	37,263

 

 

 

2. Summary and Features

 
The predecessor of「Isuzu Motors」was automobile division of「Tokyo Ishikawajima Ship-building and Engineering Co., Ltd.(東京石川島造船所)」, which is current「 IHI Corporation」. It became independent in 1929. In the field of large vehicle and diesel engine, they experience a rapid growth under the national policy during World War II, with following several mergers In 1949, after the war, the company name was changed to「Isuzu Motors」.

Together with「Toyota Motor Corporation」and「Nissan Motor Co., Ltd.」, this companyhas been continued four-wheeled vehicle business since the 1930s when full-scale mass production of vehicles started in Japan. Especially they have high technological capabilities in the diesel engine field for automobiles, ships, and industry. In 1953,「Isuzu Motors」initialed personnal automobile buisness, and it was once called as "the three major comprehensive automobile manufacturers in Japan" that was comparable to「Toyota Motor」and「Nissan Motor」.

However, sales of personnal automobile business has been stagnant for a long time, and since 1990 after the collapse of the bubble economy, they faced a finiancial crisis. And eventually, they decided to withdraw all personnal automobile business, except SUVs and OEM supply business to「Honda Motor Co., Ltd.」 and others.

As for the SUV business, they finally decided to suspend it from September 2002. At the same time, they also carried out a large-scale of lay offs of about 10,000 people, while consolidating their bases by merging with affiliated companies. In the United States, they had received OEM order of SUVs and pickup trucks from「General Motors」and had continued to supply them, but this business also ended on January 31, 2009. Their situation was so serious that the stock price dropped to 31 yen for a while.

However, large-scale support from「Mizuho Bank, Ltd.(みずほ銀行)」, and「General Motors」allow them to conduct business reconstruction. And most of all, due to the increase in demand for commercial vehicle replacement caused by the tightened exhaust gas regulations on diesel vehicles. In 2008, capital relation between「Isuzu Motors」and「General Motors」was finished, instead, they made capital and business alliance with「Toyota Motor Corporation」. However, this relationship was also cancelled as of August 2018.

One of the strengths of「Isuzu Motors」 is, they have very good reputation in truck manufacturing fieldand they obtain world top class diesel engine technology. However, nowadays, there are alternative types of engines in the automobile market such as electricity, LNG, and hydrogen. Moreover, there are many competitors from emerging countries are starting to enter the automobile industry one after another, so that global competition is expected to become intensified in the future.

 

 

 

3. Major Business

 

■ Commercial vehicle business
They manufacture and sell small, medium and large trucks and buses.

■ Engine business
They handle industrial engines, construction machinery engines, passenger car engines, etc.

■ Pickup trucks (overseas production / overseas sales)
"D-MAX" and "MU-X" are sold in Thailand, and "PANTHER" brand is developed in Indonesia.

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		1,953,186	2,070,359	2,149,168
Consolidated operating profit		146,444	166,765	176,781
Consolidated total assets		1,880,826	2,067,520	2,130,894
Consolidated net assets		962,107	1,086,510	1,116,335
Breakdown of sales	Large・Middle sized automobile	493,361	498,173	483,066
	Small sized automobile	915,242	964,616	1,032,303
	Overseas life parts	58,043	71,599	57,397
	Engine and related parts	103,312	127,014	143,525
	Others	383,227	408,957	432,876