Isuzu

GM mistakes: Saturn was sacrificed for Oldsmobile. The Olds competed with the Buick and was phased out, GM bought into Daewoo it went bankrupt. GM bought into Isuzu, it has financial troubles, GM invested in Fiat it is verging on extremely serious trouble, GM competes with itself on toom many levels: GMC trucks vs. Chevy, Buick vs. Pontiac, GM once controled 50% of US market now about 30%. Why? Poor decision making by management. Now GM has invested heavy into the troubled Saab -- just another mistake!

The following recent headlines, endorse our opinion that GM is wasting it's time and resources on aquiring new brands, and not paying enough attention to its existing lines. All manufacturers have defects and recalls, but this may be getting out of hand.

General Motors recalls 1.8 million cars

General Motors is recalling about 1.8 million cars for an electrical defect that could spark a fire in the steering column, according to Reuters

General Motors recalls over four million pickup trucks to fix tailgate cables

General Motors on Thursday said it will recall more than four million full-size pickup trucks to replace tailgate support cables that may corrode and fracture. March 2004

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* Dealers losing best-selling models and promised SUV may never show up; desperate incentives offered as company downsizes staff

* Isuzu dealers saw worst sales slide of US auto brands in 2003 w/ 30,328 vehicles sold, down 42.8% from 2002; sales off 11.8% for 1st Q this year

* Best-selling Rodeo and Axiom models to cease production in July, leaving only Ascender, which is rebadged Chevy Trailblazer

* If SUV expected in fall of 2006 is a no-show, analysts say it makes no sense for Isuzu to stay in business in the US

* US Isuzu Dealer Council members who went to Japan to see new vehicle very disappointed

* In 5-step process to bring new SUV to market, Isuzu Japan says they’re only at Step 1

* Rodeo model being discontinued because of expense required to re-engineer for new US safety regulations

* As recently as 1999, Isuzu was selling over 100K vehicles per year as they rode SUV craze

* Of 7,570 units sold in 1st Q, 5224 were soon-to-be-discontinued Rodeos; model typically being sold at $5K off $21K sticker price

* Automotive Lease Guide says 2004 Isuzu will be worth only 33% of its value in 3 years

* Isuzu Motors America shaved staff from 300 to 150; plans to reduce dealer body from 400 to 250

* GM and Isuzu are longtime business partners; GM has been invested in Isuzu since 1971

* US sales of its SUVs fell 42%+ in 2003, just over 30K, worst year-over-year performer for 2003

* This year doesn't look much better for Isuzu, sales down another 12% through March

* No other automaker even came close to Isuzu's 2003 sales free-fall

* GM wrote off its 49% stake in Isuzu Motors Ltd in 2001

* Told investors that it did not intend to invest any additional capital in Isuzu or guarantee any future obligations


The end is nigh for Isuzu franchises - Sixty Canadian Saturn-Saab-Isuzu dealers are bracing themselves to lose the increasingly weak Isuzu leg of their multi-brand franchises, Automotive News reported, adding that General Motors of Canada is reviewing the prospects of the brand introduced to Canada in 1986.

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