Isuzu North America Corporation will establish a new production facility in South Carolina, to strengthen its vehicle supply capability in anticipation of the electrification of commercial vehicles in North America.
The total investment will be approximately US$280 million and the new facility is slated to be operational in 2027.
It is expected to employ more than 700 people, with an annual production capacity of approximately 50,000 vehicles by 2030.
While carefully monitoring the adoption of electric commercial vehicles in the medium- to long-term, the new facility will introduce a variable-model, variable-volume production system that can also respond to demand for internal combustion engine vehicles.
Specifically, the facility will be the first in the Isuzu Group to use a production line without conveyors or pits, realising a highly-advanced line that maximises flexibility and scalability.
To establish a quality assurance system for all processes, the facility will automate inspections to eliminate operational errors, ensure traceability of parts, and introduce image inspections and other methods to prevent any outflow of defective products.
Isuzu entered the North American market in 1984. With record sales of 44,000 vehicles in the last fiscal year and a key market for Isuzu, the company is looking to strengthen manufacturing, sales, and service in North America.
Isuzu aims to further expand its business in North America by promoting local sourcing of components required for the production of battery electric vehicles (BEVs), for which demand is expected to grow over the medium- to long-term.
In April 2024, the Isuzu Group announced its medium-term management plan, ISUZU Transformation – Growth to 2030 (IX), which aims to expand the three areas of (1) Autonomous driving solutions, (2) Connected services, and (3) Carbon-neutral solutions as new future revenue sources, contributing 1 trillion yen in sales by the 2030s.
The IX plan positions North America as a pioneering region for the BEV business.
Last August, Isuzu began rolling out connected services in conjunction with the launch of light-duty BEV trucks and is accelerating efforts to expand its North American business.
Isuzu will continue to develop technologies and offer products that meet market needs and accelerate its business in North America, to achieve the Group’s purpose of “Moving the World – for You.”
The establishment of an Isuzu-owned and operated production base in the United States, according to Isuzu North America Corporation President, Noboru Murakami, reflects both Isuzu’s commitment to, and success in, the North American market.
“The plant will be optimally designed for our needs, streamline our processes, provide us with flexibility to react to changing market conditions, and position us for even greater growth in the North American Market,” he said.
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