Press Release

May 24, 2002
Isuzu Motors Limited

Isuzu Motors Limited Reports
Progress of Mid-term Business Plan, "Isuzu V-Plan"


May 24 (Tokyo) - Isuzu Motors Limited announced today that it has made a steady progress in the mid-term business plan, "Isuzu V-Plan", launched in May 2001. By expeditiously coping with the dramatic changes in business environment, Isuzu made necessary adjustments to the V-Plan, all for the purpose of pursuing restoration of enterprise value and competitiveness. As a result, corporate performance began demonstrating solid improvements.

< Outline of Isuzu V-Plan >
Outline of Isuzu V-Plan
< Performance assessment for the year ended March 2002 >
In the first year of the V-Plan, Isuzu made a significant progress by implementing every initiative with an aggressive stance. However, factors such as increase in expense outlays for the North American sales operations, prolonged market slump in Japan and intensifying competitive situation, had to present negative effects on earnings. Thus, the first year results fell short of the target. Despite such results, Isuzu was able to lay solid foundation for the earnings improvement in current fiscal year and years beyond.
Key achievements include:

Significant improvement in earnings on lower sales revenue. Achieved complete turnaround of operating profits.
Significant reduction in total consolidated assets and interest-bearing debts.
Solid implementation of headcount reduction, labor cost reduction plans, re-establishing the structure capable of generating constant earnings improvements from this year onwards.
Achieved revenue increase in the power-train business, while steadily executing GM collaboration activities.
Reviewed North American businesses.

Snap-shot summary of Isuzu V-Plan Progress:
Key Initiatives and V-Plan Target
Progress
V-Plan Target for
March 2004
As ofMar 2002
Vs. Target
Review North
American
Businesses
Isuzu America
(Local HQ)
AIMI (Sales)
- 350 ps
- 440 ps
- 620
- 170
Target reduction will
be completed in
FY101
SIA (Manf.)
- 1,750 ps
- 1,300
- 450
Total
- 2,540
- 1,920
- 620
Domestic
Dealer
Earnings
Achieve profit turnaround
at all dealers
12 of 21 dealers (consolidated)
achieved profit turnaround
Achieve profit
turnaround at all
dealers
No. of dealers
41
40
 
Approx. 25
No. of outlets
400
380
 
320
Group-wide
eadcount
Reduction
Parent
14,400 ps
12,000
- 2,400
8,700
Dealers
9,300 ps
8,100
- 1,200
6,700
Subsidiaries
14,000 ps
12,100
- 1,900
9,300
Total
37,700 ps
32,200
- 5,500
24,700
Consolidate
Manf.
Infrastructures
Operating ratio
50%
Realignment of manf. infrastructure
now underway
Over 90% (See *1)
Material Cost Reduction
13% reduction
Accumulating reduction resources
from the start of activity (See *2)
20% reduction
Total Asset
Reduction
Consolidated
Assets
Y1,460 bil
Y1,250 bil
- Y210 bil
Y1,110 bil
Consolidated
Debt balance
Y750 bil
Y680 bil
- Y70 bil
Y510 bil
Reduce Number of
Subsidiaries
109
83 companies
- 24%
- 40%
26-comp.
reduction
To 70 companies
Domestic RV
Business
Leverage sales resource
sharing with GM
Transformed 24 Isuzu dealers into
GMAW outlets
Re-establish sales
structure in FY101.
Engineering
Efficiency
Improvement
Platform
integration
into 3 types
7 types
Integration underway in line with new
product program
3 types

Note:  *1:  Consolidation of manufacturing infrastructure will be completed when relocation of Kawasaki Plant activities are complete.
*2:  Material cost reduction initiative began in October 2000 preceded the start of V-Plan.
*3:  Platform integration schedule is set in accordance with the model change timing (starting from 2005)

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