JAPAN: Isuzu to seek over 100 billion yen from banks, cut US SUV output - report

By just-auto.com editorial team | 14 August 2002

Truck, SUV, pickup truck and diesel engine maker Isuzu Motors is to ask banks for extra help of more than 100 billion yen ($US845.8 million) to help it restructure, Reuters reported.

This would be in addition to 100 billion yen in debt-equity swaps that the banks had already agreed to, Isuzu President Yoshinori Ida told a news conference, according to Reuters.

Reuters said that Isuzu also announced it was cutting its output of sport utility vehicles in North America by half to an annual figure of 40,000 vehicles.

Isuzu had previously said it would also receive 60 billion yen in funds from top shareholder General Motors in a bid to revive its fortunes, Reuters said.

According to Reuters, Isuzu said at the time GM would cancel its current 49% stake in the company and invest 10 billion yen for a 12% stake under a recapitalisation plan.