05

							Ⅴ. Future Vision, Business Strategy
                                      Strategic Direction
               Direction                Product/Technology           Market             Business Focus

                                                                                •• Reform of sales
                                                                                   Reform of sales
                                                                     JPN
                                                                     JPN           structure/Expand sales to
                                                                                   structure/Expand sales to
        Concentrate resources
        Concentrate resources           •• Introduce new
                                            Introduce new                          major cargo fleet
                                                                                   major cargo fleet
        on CV as core business
        on CV as core business             engine (10-liter, L6)
                                            engine (10-liter, L6)
CV
CV                                                                              •• Aggressive sales
                                                                                   Aggressive sales
        Maximize
         Maximize                       •• Full model change
                                           Full model change         China
                                                                      China        expansion, leveraging
                                                                                   expansion, leveraging
        revenue/volume
         revenue/volume                    of 2- to 4-ton
                                           of 2- to 4-ton            ASEAN
                                                                     ASEAN         brand equity
                                                                                   brand equity
                                                                       NA
                                                                       NA       •• Enrich product line-up
                                                                                   Enrich product line-up
                                                                                •• 3rd-party alliance
                                                                                   3rd-party alliance

        Pursue maximum
         Pursue maximum
        efficiency in return on         •• Introduce P-up
                                            Introduce P-up                      •• Maintain No.1 market share
                                                                                   Maintain No.1 market share
         efficiency in return on                                     Thailand
                                                                     Thailand
        investment                         derivative
                                            derivative                          •• Reinforce alliance with MC
                                                                                   Reinforce alliance with MC
LCV
LCV      investment
      --Centralize production in
        Centralize production in
         Thailand                       •• Introduce new L4         ASEAN,      •• Increase vol with derivative
                                                                                    Increase vol with derivative
          Thailand                          Introduce new L4        ASEAN,
      --Tie-up sales operation with                                                vehicle
                                                                                    vehicle
        Tie-up sales operation with        DE
                                            DE                      etc.
                                                                    etc.
         MC                                                                     •• Aggressive sales in GM territories
                                                                                    Aggressive sales in GM territories
          MC


SUV
SUV     Minimize business risks
                                        •• Add OEM models
                                           Add OEM models              NA
                                                                                •• Review operational
                                                                                   Review operational
        Minimize business risks         •• V6 gas engine               NA          structure to suit sales vol.
                                            V6 gas engine                          structure to suit sales vol.


                                                                       NA
                                                                       NA       •• Capacity increase at DMAX
                                                                                   Capacity increase at DMAX
        Secure business
        Secure business
PT
PT      stability through
                                        Improve product: V6,
                                         Improve product: V6,
        stability through                      V8, L4
        creation of JV with GM                 V8, L4                           •• Max. vol operation (300k)
                                                                                   Max. vol operation (300k)
        creation of JV with GM                                       Europe
                                                                     Europe     •• Expand other OEM sales
                                                                                   Expand other OEM sales
                CV Business: Product/Market
                 Market                   Japan                               Overseas
Product                                   Japan                               Overseas
Group/Engine
                            Adopt on CVs for heavy cargo            Ally with third-party for manf./sales
            New
            New             carrier/construction use                operations
           14-liter
           14-liter
                                                                    Capture CV market opportunity in
                            Secure stable growth as Isuzu's
       ‐High output                                                 China whose construction/public
                            stronghold
HD
HD                                                                  works are booming
       ‐High torque

                            Enrich cargo CV offering with new
                                                                    Introduce as "Asian Truck"
            New             engine (meeting the need for greater
            New             cargo-load efficiency and higher fuel
           10-liter
           10-liter         efficiency)
                                                                    Pursue volume merit through
                            Boost market share of cargo types,      regional complementation in manf.,
MD
MD     ‐ Energy efficient   with the 1st in class output and fuel   and consolidation of smaller-scale
       ‐ Light weight       efficiency                              markets



                            Enrich LCV line-up by adopting new      Expand new engine adoption
          New 3-liter
          New 3-liter       engines on ELF                          covering pick-up derivative and LCV
LD/
 LD/     New 2.5 liter
         New 2.5 liter
LCV
LCV                         Ensure absolute advantage over          Leverage the strengths as the world
        ‐ High output       competition by meeting market           No1 light-weight, biggest volume
        - Light weight      needs thoroughly                        LCV
                        Material Cost Reduction
                                Commonize next generation MD and LD cab ( -30%)
                                Volume merit from HD and MD truck ( -15%)
                                  − In short-term, reduce domestic supplier prices by leveraging
                                    China/ASEAN volume (eg. extensive use of dies)
                      CV          − In mid-term, expand procurement from China/ASEAN to
                      CV
                                    achieve further cost reduction
  Generate cost
  Generate cost                 Drastic de-proliferation : vehicle variations, engine series
 saving through
 saving through
volume merit, on                  − HD: 500 --> 200
volume merit, on
   part-by-part
   part-by-part                   − MD, LD: 5,000 --> 2,000
      basis
      basis                       − Engine: 9 --> 7 series

                                Combine purchase volume with US-produced GM volume (WWP
                                program)
                      LCV
                      LCV       Review manf. footprint plans for new engine (Japan, China, Thailand)
                                Secure re-quotation and/or re-source based on increase volume
                                including derivative models (10%)


                       Joint purchasing with GM Alliance Partners (FHI, SZK, GM): 13 commodities + α
                       Collaboration with keiretsu body-builders: Integrate chassis & body engineering
 Unconventional
  Unconventional       (body: 10%)
  Approach (esp.
  Approach (esp.       Supply component to 3rd parties (GM, domestic competitors, etc)
leverage alliance)
 leverage alliance)
                         − Suspension, T/M, Transfer
                       Reinforce complementary relationship with non-keiretsu suppliers
                      For reference: HD Sales

 (units)

16000

14000

12000

10000

8000                                                                                O/S
                                                                                    Dom.
6000

4000

2000

    0
        Mar.'99   Mar.'00   Mar.'01   Mar.'02   Mar.'03   Mar.'04   Mar.'05   (FY through)


                       Actual/Estimate                          FCST
                         For reference: P’up
                              Export Forecast
                           -Excl. Sales in Thailand-
 (units)

200,000

180,000
                                                                 Derivative
160,000

140,000

120,000

100,000
                                                                    GM
 80,000

 60,000

 40,000
                                                                    ISZ
 20,000

      0
           CY02   CY03      CY04       CY05        CY06   CY07