Isuzu to Cut Work Force Further
Isuzu Motors Ltd., Japan’s No. 2 truck maker, said today it will cut 3,000 more jobs to slash costs amid slumping sales in the U.S. and its home market.
The Tokyo-based auto maker plans to cut 12,700 of its 38,000 jobs, or a third of its work force, by its fiscal year ending March 31, 2004, said company spokesman Kouitsu Mabuchi. Isuzu in May said it would cut 9,700 jobs.
Isuzu also said it will post a full-year loss of $202 million.
The Japanese truck maker said its first-half loss widened 6.8%. The half-year results were in line with the forecast of a $202-million loss made by Toyo Keizai, an estimate service.
Weak car demand in the U.S. and sluggish truck sales at home are crimping Isuzu’s bid to return to profit in its fiscal year ending March 31. The auto maker, 48.5% of which is owned by General Motors Corp., was scheduled to report fiscal first-half earnings today.
“We want to build a system as soon as possible that will allow us to produce stable profit, even if sales fall,” Mabuchi said.
About 2,000 of the additional job losses will be at the parent company, 600 at Japanese sales units of Isuzu and 300 at its U.S. marketing units, Mabuchi said.