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Isuzu's Alabama Plant Derailed

Isuzu Motors Ltd. has mothballed its plan to
build light commercial truck plant which wasGov. Bob Riley met with Isuzu leaders on a
reported  to  be  destined  for  Pinson.trip to Japan in October, and said that the
talks were "enthusiastic" and "very
Isuzu President Susumu Hosoi told Kyodo Newspositive."
agency Wednesday that the company is worried
the subprime mortgage crisis will hurt theIsuzu's truck sales in North America
U.S. economy, and that the concerns areincreased about ten percent to 27,000 in
serious enough to put the company's plans for2006, and the automaker said its goal was
a  North  American  plant  on  hold.50,000. Nearly all of Tokyo-based Isuzu's
vehicles sold in the U.S are imported from
"Our projections for the U.S. market down theJapan.
road are not very good, and we can't see
sufficient volume" of sales coming fromThe plant has been the subject of much
there,  said  Hosoi.discussion. In September, Automotive News
reported Isuzu has delayed breaking ground on
Last year, the automaker purchased athe Pinson plant because it was considering a
300,000-square-foot warehouse on Pinsonsite in Mexico. In April, Nikkei, a Japanese
Valley Parkway for $8 million. Individualsnewspaper reported Isuzu planned to build in
familiar with the state and local efforts toPinson  and  produce  5,000  trucks  a  year.
recruit Isuzu said that the company planned
to build light commercial trucks and employThe maker of Isuzu radiator already makes
as many as 1,000 people at the site, Thecommercial trucks in Japan. The trucks are
Birmingham  News  reported.equipped with a low cab and boxy cargo area
usually used by contractors, delivery
It is too early to give up on the project,services and plumbers. Isuzu also operates a
though, said Metropolitan Development Boardcommercial truck assembly plant in
President Ted von Cannon. Von Cannon, theJanesville, Wis., in partnership with General
head of the partnership that recruits newMotors  Corp.
businesses to the area, said last Wednesday
that projects are sometimes delayed becauseIn the automotive industry, the buzzword is
of global economic conditions. "I have notexpansion. Expansion is not limited to
been told this is a dead issue," von Cannonenhancing Mazda floor mats or any auto part
added. "We will continue to move forward withfor that matter. It means expansion of reach
all  projects  big  and  small."to compete closely in the global arena.



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