JAPAN 'QUAKE: Isuzu suspends output in Philippines, denies take-over
Truck and diesel engine specialist Isuzu Motors is the latest Japanese automaker to suspend production, at its Philippine subsidiary, due to parts shortages.
Isuzu Philippines Corporation (IPC) will suspend assembly for eight days between 18 April and 2 May. The company said it is still optimistic it can meet its 17% growth target for this year. This translates into a 50% reduction in output for the month of April.
Further disruption has not been ruled out, as ongoing uncertainty persists with regard to supply chain disruption. Yuki Kato, IPC executive vice-president, told local reporters that, while Isuzu Motors suffered no direct damage as a result of last month’s earthquakes, some of its secondary suppliers have been affected.
IPC depends heavily on parts imported from Japan, with local content of 45% for its highest-volume model.
Separately, Isuzu was forced to deny reports in the German press that Volkswagen was looking to acquire a stake in the Tokyo-based truckmaker.
Isuzu Motors president Susumu Hosoi told reporters he plans to run his automaker independently and that a business tie-up with another would be only to improve access to markets and market segments.