II.. Review of Business Structure

SUV Businesses in North America
Commensurate with decreased SUV sales volume, review and right-size the scale of business operations.
1. Adjust manufacturing capacity (incl. review of product sourcing, ie OEM, etc.)
2. Review sales cost and organization to match sales volume
* Areas in red

SUV Businesses in North America -1-
< Sourcing > < Distribution >

SUV Businesses in North America -2-

GM-Isuzu Power-train Engineering JV
Create a new power-train engineering JV with GM to engage in engineering and manufacturing of DE for GM vehicle application

GM-Isuzu Power-train Engineering JV -1-

GM-Isuzu Power-train Engineering JV -2-
* IMG to provide services to Engineering JV on consignment basis

Right-sizing Overall Employment
Voluntary Early Retirement program was implemented earlier than original plan to ensure achievement of the V-Plan target (ie 8,700-person organization in March '04: on Isuzu payroll)

Right-sizing Overall Employment

Restructuring Charges and Improvements
In current fiscal year through March '03, Isuzu will take approximately Y140.0 billion charges. However, effects of restructuring will largely contribute to earnings in ensuing years.

Positive effects
(as compared to actual results through March '02)
Initiatives Charges Mar.'03 Mar.'04 Mar.'05
Review/restructure North America
- Revaluation of investments in subsidiaries
- Revaluation of under-performing facilities in SIA
- Restructuring at Isuzu-America
+6.0 +38.0 +38.0
Headcount reduction (22.0) +8.0 +21.0 +21.0
Exit domestic RV business (3.0) +1.0 +1.0 +1.0
Recognition of latent losses, etc. (25.0)      
Total (141.0) +15.0 +60.0 +60.0

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