Isuzu in Financial Trouble? Parts Availability after They Leave Australia?

mskeggs on 10/03/2024 - 15:57

Isuzu have announced they will be forced to leave the Australian market if the Government goes ahead with new emissions standards.
https://www.drive.com.au/news/isuzu-warns-of-exit-from-austr…

Seeing how hese standards are anticipated to add only a few hundred dollars of costs to even heavily polluting vehicles, does this mean Isuzu is really shaky?
I think their bus unit had to pause production due to false engine emission test reporting.

They haven't stated if future parts will be available for Isuzu vehicles sold between now and the end of the year when the new regulations are due.

Would you hold off a purchase if they may be about to dramatically drop prices in a run out sale?
If you are going ahead, are you seeking a bigger discount for all this uncertainty?

Automotive Isuzu

Comments

  • Hybroid on 10/03/2024 - 16:01
    +5

    TIL Isuzu have sold 300,000+ vehicles in Australia over the past 15 years with 225,000 D-Max and 85,000 MU-X split. That's far more than expected.

    • Jimothy Wongingtons on 10/03/2024 - 17:21
      +2

      As a hilux driver, I drove a mates 2023 dmax around the block the other day and you know what? It was actually pretty good.

      • Gunnar on 10/03/2024 - 20:13

        Don’t like your F series doll face?

    • HeWhoKnows on 11/03/2024 - 07:27

      By law they must supply parts for the next 10 years as a minimum

  • Ocker on 10/03/2024 - 16:02
    +2

    "Isuzu in Financial Trouble?"………………bit of a gross exaggeration to draw that conclusion.

    • mskeggs on 10/03/2024 - 16:03

      I thought they were doing OK too, but why would the CEO be saying they have to pull out if the emissions laws change? Surely they wouldn't create so much uncertainty unless it was true.

      • Ocker on 10/03/2024 - 16:09
        +22

        Reckon it is all a game of bluff - Isuzu are one of the top 10 selling car brands in Australia and hard to see them walking out.

        • mskeggs on 10/03/2024 - 16:11
          +1

          Just like Holden…
          Seems a big bluff to say you are leaving the market, which would have to give pause to everyone thinking of buying an Isuzu. I forwarded the article on to the relo looking at a new ute, as I am sure they thought Isuzu would be here for years to come.

          • freefall101 on 10/03/2024 - 19:52
            +2

            @mskeggs: The writing had been on the wall for Holden long before they closed it. They didn't say it was due to government regulation, they didn't say someone needed to save it, they just said it needed huge investment and it wasn't worth the money.

            Isuzu is taking the piss, as the writing was on the wall for emissions standards. Australia has become a dumping ground for inefficient cars because most other countries have updated their standards already. There's a reason they only sell the D-Max through mostly South East Asia, they lack regulations too.

            Isuzu will be fine. They could have just kept using the Chevy Colorado as the base (or go back to it) as it meets US emission standards.

        • barge-in hunter on 10/03/2024 - 17:39
          +3

          Not sure tbh; I mean, compared to other countries, Australia probably doesn’t represent a high percentage of their overall sales? This is all conjecture - but Australia has an overly saturated car market, with far too many manufacturers for the market size

      • Stewardo on 10/03/2024 - 18:08
        +2

        They are just trying to whip up negative sentiment to the changes in the emissions laws.
        Who wants a foreign company trying to have influence on Australian laws anyway.
        They probably don’t have much research and development on low emissions cars yet.
        I’m sure the emissions targets wouldn’t be strict as Europe. Where will they operate if all their markets legislate the low emissions targets?

    • gitl on 23/03/2024 - 09:44

      Correct. They are far exceeding sales targets and profit targets.

      I think it's a victim of clickbait / chinese whisper journalism. If you actually read the official response to NVES, it was about asking for a more collaborative approach between government and industry, than a heavy handed penalty mindset which could end up passing penalty costs to customers for brands.

      CarsGuide started with: Isuzu Australia weighs in on incoming emissions standards as some of the most popular diesel utes feel the crunch: 'Vehicle brands that cannot increase vehicle pricing to cover the penalties may be left with no option but to exit the Australian market' … of course quoting the most dramatic part of the entire statement.

      Drive.com follows with: "Isuzu warns of price hikes, exit from Australia under proposed new-car emissions rules"

      Sigh.

  • payless69 on 10/03/2024 - 16:44
    +2

    Japan has far stricter emission standards.
    Just a lack of future vision. Just need a cow piss tank (ad blue) added and then they are good to go!

    • Wiadro on 10/03/2024 - 18:00
      +1

      Yes Japan does, however the consumer pays the tax to own the vehicle they want rather than restricting the manufacturer

      • mskeggs on 10/03/2024 - 18:05
        +2

        That is the outcome here too. If the manufacturer can't meet emissions across their fleet there is a surcharge per vehicle.

        • RockyRaccoon on 11/03/2024 - 10:04

          If Isuzu adds say 10% to its price with the surcharge, then if other comparable vehicles dont then they may just kill their sales. Given also that overall "Big Ute" sales will be impacted - which is the intent of the legislation - then there will be an even bigger impact on their volumes.

          Sales volume also gives savings in overheads. Parts inventory gives some economies of scale, same with admin etc. At some point its not worth selling the product given also long term liabilities like 10 years parts required.

          Other manufacturers also get advantgae of these economies with other vehicles in their range, so if say Toyota loses sales of the HiLux, the get sales of their Hybrids.

          Yes Izuzu might be "bluffing" but at the same time, it may not. Whatever, its probably more likely to be impacted than other manufacturers.

    • Euphemistic on 10/03/2024 - 21:30
      +5

      There is already a spot in the fuel filler for an adblue filler in the current mux. Indicates its already factory fitment elsewhere.

      That just shows that australia is getting vehicles with worse emisions than the company is already making just so they can make a few extra bucks.

  • Euphemistic on 10/03/2024 - 16:44
    +7

    The emission standarda will hurt Isuzu more than some other companies. They only sell two passenger cars and both are large and diesel powered. They wont be able to lower the emisions through any 'fleet averaging' or getting credits like other makers that have small efficient or electric models.

    On the flip side, the likes of tesla and byd have only electric models and have been making profits in other markets by selling emission credits to legacy makers in other markets.

    Will isuzu leave? Time will tell, but they havent been here all that long. Its probably just a hissy fit to try and avoid any modification to their business. Prior to isuzu selling the dmax they supplied Holden with utes and 4wds for ages. They already have a deal with mazda to share the dmax platform. There is every chance isuzu walks away and leaves mazda to hold their aussie presence.

    Ive got skin in the game with some isuzu badges in the driveway. Hope they stay.

  • Ocker on 10/03/2024 - 17:01

    I would have thought 50+ years in Australia is quite a reasonable time?

  • Gdsamp on 10/03/2024 - 17:16
    +1

    45k cars sold in AU in 2023, out of 671k total (https://www.statista.com/statistics/1084168/isuzu-vehicle-sa…)
    for about 6% of their total sales. Potentially higher margins here on the better trims compared to other markets

    the article notes that ' few variants of which would meet the government’s proposed version of its New Vehicle Efficiency Standard (NVES)'
    I'm assuming that the 1.9 TD probably meets the requirements? as that meets the euro 5 emissions standards but the 3.0 probably does not

    so the bean counters know that sales would drop considerably if only the smaller engine was offered

  • WreckTangle on 10/03/2024 - 17:30
    +7

    Instead of embracing environmental standards used around the world, Some automotive companies are acting very recalcitrant. They think they can bully our government. Well if they don’t like it then they can leave our market… Good riddance.

    • Dollar General on 10/03/2024 - 18:43
      +2

      Yeah it’s all talk, They are already meeting these standards as a minimum elsewhere. Just playing hardball to get taxpayer funds

  • Baysew on 10/03/2024 - 17:31
    +5

    I guess that they really will go their own way.

  • JIMB0 on 10/03/2024 - 18:01
    +3

    They're bluffing. It would be funny if it backfires on them and people avoid the brand.

    • Euphemistic on 10/03/2024 - 18:13
      +2

      Until the emission standards actually come in, any threat of leaving the market can only reduce buyer numbers. Tyey are popular, but its not like noone else makes a similar product. There wont be many who are that desperate to buy one that they'd lobby the government to stop the emission standards.

  • Dollar General on 10/03/2024 - 18:42

    We can be sure Elon Musk will not pull out.

    • zathras on 10/03/2024 - 21:59

      Like father like son.

  • GordonD on 10/03/2024 - 19:51
    +4

    I can see why companies like Isuzu feel aggrieved.

    In the US cars have to meet one fuel efficiency standard, trucks another. In Australia SUVs will be lumped in with cars, not trucks, and companies like Isuzu that only sell SUVs and twin-cab utes will be expected, quite quickly to somehow meet car fuel economy standards. They can't do it quickly. Perhaps not at all.

    They'll very quickly be paying large fines that will push their vehicles above the price that consumers will want to pay. They'll either have to somehow survive with much lower volume, or run their Australian operation at a loss. Where's the benefit to them to do that?

    They may as well pull out. They may have to.

    • Dollar General on 11/03/2024 - 09:06

      Gov & industry will compromise. That’s how these things always play out. Becomes a win win for both sides

  • GordonD on 10/03/2024 - 20:10
    +2

    In case anyone is wondering why Tesla is such a big supporter of what the Australian government is going to do, at last count 30% - about $3 billion - of its revenue was generated by selling emissions credits to other car manufacturers who can't meet the emissions limits except by buying credits.

    When another company can't meet the limit, the taxpayer doesn't collect the fine, Tesla gets the revenue by selling them credits.

    I'm not saying that's wrong or bad. That's how the system is intended to work. The price of higher polluting vehicles is pushed up to discourage people from buying them, and the price of expensive EVs, which otherwise almost no-one could afford, is made affordable to at least some. So given that it has to work to do what its intended to do, its ridiculous fibbing for its advocates to say it won't drive up prices. It only works if it does.

  • jimbobaus on 10/03/2024 - 20:34
    +2

    They have no issues adhering to standards in every other market they operate in, they won’t leave Aus, prices won’t go up it’s just a scare tactic by the industry to try and stop Australia doing what every other country including New Zealand does.

  • saltypete on 11/03/2024 - 08:20
    +2

    Remember - when a car salesperson opens their mouth it’s BS coming out.
    I guess the issue for all of the Japanese makes is that EVs are increasing eating their lunch in the passenger sector, so they have little to offer in the way of offsets across their model range. Isuzu more so than most.
    They have plenty of compliant vehicles in other counties though…..

  • ozbargainoid on 11/03/2024 - 11:49
    +1

    If Isuzu were going to pull out, the LAST thing they would do is tell everybody.
    This would damage the brand and cause difficulties to the shut down process.
    This is just PR BS as they are trying to put pressure on the government to drop the plan to have fleet fuel averaging, as most of their product would be impacted.
    For example did anyone see Holden shutting down?…no, they flagged local production ending, but even the dealers didn't know they were leaving.

  • Hackney on 23/03/2024 - 12:53

    They are not going anywhere!

  • Euphemistic on 23/03/2024 - 13:39

    Isuzu announced an EV Dmax. More proof they are not going anywhere - and that they are ready for emmiison standards.

    https://www.drive.com.au/news/electric-isuzu-d-max-ute-confi…

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