5. Mid/Long-term Strategy as Vision Enabler (1) CV/LCV Product / Market Strategy (2) Diesel Engine Strategy (3) Alliance Strategy
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1 5. Mid/Long-term Strategy as Vision Enabler (1) CV/LCV Product / Strategy (2) Diesel Engine Strategy (3) Alliance Strategy 19 Copyright(C) 2007 Isuzu Motors Limited All rights reserved
2 5-1. CV/LCV Product / Strategies - Product Strategies - Completed strategic, global product development by integrating MD and LD To introduce next-generation HD, Pick-up. Start development of lightweight LD, that has a significant demand globally. Lineup Product Strategies Current Future Next-generation HD HD Next-gen. HD No.1 fuel-economy, cargo efficiency: 1. 15% fuel economy improvement 2. Enrich product variation with MD-cab LCV CV Integrated Product Pick-up / Derivative MD LD Light weight LD Next-gen. Pick-up / Derivative New Product (Ultra-high efficiency lightweight LD) New lightweight products with high cargocarrying capacity and durability - 20% weight reduction from current N- series - 10% fuel efficiency improvement without sacrificing cargo-carrying capacity Next-generation LCV New LCV with more pronounced basic attributes of CV - 10% fuel efficiency improvement over current model. - Reinforce versatility/multi-purpose attributes (derivatives). 20 Copyright(C) 2007 Isuzu Motors Limited All rights reserved
3 5-1. CV/LCV Product / Strategies - Strategies and Reinforcement of Functional Capabilities - Introduce full lineup of CV/LCV and reinforce sales/mfg. functions in Large, Growth and Resource-rich countries. Expand Product Lineup/offering Lightweight HD MD LD LD LCV Sales Reinforce Functions Veh. Mfg. Compo.* Mfg. Salesrelated Large, Growth Resource- Rich Countries Mature China India/Russia ASEAN Americas/Africa Mid-East North America Europe Japan Consolidate regional volume of production New market for Isuzu Functional reinforcement Presence already established * Compo: Engine, transmission, axle, forged/cast materials 21 Copyright(C) 2007 Isuzu Motors Limited All rights reserved
4 5-1. CV/LCV Product / Strategies - Reinforcement of International Operations - In large, growth markets, focus be given to self-contained, stand-alone volume mfg., satisfying given country s volume requirement. As to ASEAN, focus will be intra-regional mfg, while all other countries focus will be regional consolidation of mfg. volume. Egypt Russia Ukraine U.K. Benelux Germany/Au stria Spain/Portugal Turkey Mid-East Stand-alone alone mfg. volume Consolidate regional volume China Taiwan Phillippines Vietnam Thailand Stand-alone alone mfg. volume Canada U. S. Mexico Consolidate regional volume South Africa India Stand-alone alone mfg. volume Indonesia Malaysia Australia Intra-regional regional mfg. Sales Operation Mfg./Assembly operation Functional reinforcement New 22 Copyright(C) 2007 Isuzu Motors Limited All rights reserved
5 5-2. Diesel Engine Strategy Expand product lineup in the volume-rich mass-production segment, i.e. small diesel engines, and increase small DE sales for industrial as well as passenger car application Displacement (L) Isuzu DE Lineup CV LCV HD MD LD for cars Industrial use Size in '05 mil. units 1. 2 Mass production segment Smaller displacement, with higher output Current New High efficiency, small DE Copyright(C) 2007 Isuzu Motors Limited All rights reserved 16.5
6 5-3. Alliance Strategy Drive alliance strategy to a new dimension by expanding the scope of collaboration and delving deeper into mfg. and engineering areas, in addition to maintaining Isuzu s conventional alliance model focused on product complementation. Product-complementation alliance Mfg./Engineering Alliance CV in Overseas s CV in Japan LD HD Bus LCV DE for Cars GM OEM* Hino Hino GM GM Toyota Alliance Expected Benefits to Isuzu Joint development of aftertreatment for HD, and cab Efficiency improvement in CV s core operations Generation of resources that can be shifted to new business areas Develop and supply Isuzu DE to the world top-notch car maker for their volume-rich car lines Expansion and stabilization of DE businesses Perfection of Isuzu s advanced technologies :Conventional alliance :New * ELF OEM : Nissan Diesel, Nissan, Mazda 24 Copyright(C) 2007 Isuzu Motors Limited All rights reserved
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