Isuzu pulls plug on its auto sales
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Enlarge 2004 Getty Images photo

The grille of an Ascender, which GM produced for Isuzu. GM once owned a major stake in Isuzu.





Digg del.icio.us Newsvine Reddit FacebookWhat's this?By Alan Ohnsman, Bloomberg News
Isuzu Motors, which helped popularize SUVs in the 1980s, said Wednesday that it will exit the U.S. consumer market on Jan. 31, 2009.
The Japanese company blamed the move on General Motors ceasing production for Isuzu of the Ascender sport-utility vehicle and I-290 and I-370 pickups.

Ascender is a rebadged Chevrolet TrailBlazer, which GM is expected to discontinue. The I-series pickups are versions of the Chevy Colorado small pickup.

"It has always been our intention to remain in the U.S. market," Terry Maloney, COO of Isuzu Motors America, said in a statement. "However, we were unable to secure any commercially viable replacements for these vehicles."

Isuzu's boxy Trooper sparked interest in truck-based SUVs in the late 1980s, helping push its U.S. sales to a peak of 103,629 in 1999. Since then, Isuzu's had the industry's steepest decline, selling just 7,098 vehicles last year.

FIND MORE STORIES IN: General Motors | Chevrolet | Getty | SUVS | Toyota Motor | Japanese company | Trooper | Isuzu Motors, Ltd.
"They were right there at the start of the SUV boom with a product that was really competitive," said Jim Hossack, an industry analyst for AutoPacific. "They failed to play to their strength, traditional SUVs, and, ultimately, didn't have the resources to keep investing in products for the U.S."

Isuzu said it will continue to provide service and parts for consumer models and sell commercial vehicles, diesel engines and components in the USA.

GM owned 49% of Isuzu until 2002, selling its remaining 90 million shares last year. Toyota Motor, Japan's biggest automaker, has a 5.9% stake in Isuzu.

Isuzu said that it will back its products and network of about 200 U.S. dealers for years to come, honoring all warranties and roadside assistance programs.

"Isuzu will discontinue the sales of vehicles only. Our parts and service operation will remain fully functional," Maloney said. "We expect the vast majority of our dealers will continue as service-only."

Contributing: The Associated Press

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