Isuzu's Alabama Plant Derailed

Isuzu Motors Ltd. has mothballed its plan to buildmove forward with all projects big and small."
light commercial truck plant which was reportedGov. Bob Riley met with Isuzu leaders on a trip to
to be destined for Pinson.Japan in October, and said that the talks were
Isuzu President Susumu Hosoi told Kyodo News"enthusiastic" and "very positive."
agency Wednesday that the company is worriedIsuzu's truck sales in North America increased
the subprime mortgage crisis will hurt the U.S.about ten percent to 27,000 in 2006, and the
economy, and that the concerns are seriousautomaker said its goal was 50,000. Nearly all of
enough to put the company's plans for a NorthTokyo-based Isuzu's vehicles sold in the U.S are
American plant on hold.imported from Japan.
"Our projections for the U.S. market down theThe plant has been the subject of much
road are not very good, and we can't seediscussion. In September, Automotive News
sufficient volume" of sales coming from there,reported Isuzu has delayed breaking ground on
said Hosoi.the Pinson plant because it was considering a site
Last year, the automaker purchased ain Mexico. In April, Nikkei, a Japanese newspaper
300,000-square-foot warehouse on Pinson Valleyreported Isuzu planned to build in Pinson and
Parkway for $8 million. Individuals familiar with theproduce 5,000 trucks a year.
state and local efforts to recruit Isuzu said thatThe maker of Isuzu radiator already makes
the company planned to build light commercialcommercial trucks in Japan. The trucks are
trucks and employ as many as 1,000 people atequipped with a low cab and boxy cargo area
the site, The Birmingham News reported.usually used by contractors, delivery services and
It is too early to give up on the project, though,plumbers. Isuzu also operates a commercial truck
said Metropolitan Development Board Presidentassembly plant in Janesville, Wis., in partnership
Ted von Cannon. Von Cannon, the head of thewith General Motors Corp.
partnership that recruits new businesses to theIn the automotive industry, the buzzword is
area, said last Wednesday that projects areexpansion. Expansion is not limited to enhancing
sometimes delayed because of global economicMazda floor mats or any auto part for that
conditions. "I have not been told this is a deadmatter. It means expansion of reach to compete
issue," von Cannon added. "We will continue toclosely in the global arena.