ISUZU:Isuzu agrees to establish JV for commercial vehicle sales in South Africa

  Isuzu Motors Limited (Isuzu) has agreed to establish Isuzu Truck South Africa (Pty) Limited (ITSA), which is formed as a JV company to sell the CV (commercial vehicle) in the Republic of South Africa.

  ITSA will be the JV Company established by and between Isuzu and GM South Africa (100% owned by GM: hereinafter called "GMSA") to implement the marketing and sales of Isuzu commercial vehicles in the Republic of South Africa and its neighboring countries. It is capitalized at 80 million rand (approx. 1.3 billion yen), 50% held by Isuzu and 50% held by GMSA.

  In South Africa, GMSA has been so far implementing the marketing and sales of Isuzu-make CVs and pickup trucks with the Isuzu brand as well as GM brand passenger cars. This time, the purpose of the JV establishment is to further reinforce the CV business in the regions by introduction of global CV sales know-how owned by Isuzu. Thereby we have decided to shift the CV distribution function from GMSA to ITSA with a view to Isuzu's more involvement in the CV business.
  Isuzu and GM continue to strengthen and expand the business presence through their alliances in South Africa and its neighboring countries, in concert with the CV business handled by ITSA, and the pickup truck and passenger car business handled by GMSA as usual.

  ITSA will first start its business with the sales of Isuzu N Series (ELF) and F Series (Forward). In future, it will study possibility of introducing C&E Series (GIGA). The 2005 Isuzu commercial vehicle sales in the said market totaled 2,307 units (market share 8%). The 2007 sales are planned at 3,500 units (market share 13%), and the 2010 sales planned at 5,600 units (market share 20%), which is a big increase. At present, Isuzu commercial vehicle sales rank 5th in South Africa. The market leader is the Daimler Group with the market share of 22%.

  In South Africa, the 2005 automobile industry sales are 556,000 units, of which 27,000 units are commercial vehicles. Supported by the recent soaring resources market, its economic growth is expected to continue in future. The 2010 automobile industry sales are expected to expand to 800,000 units, of which commercial vehicles will exceed 31,000 units. The South African market scale is likely to grow as big as the Australian market scale.