Isuzu PH to Stop Local Isuzu D-Max Production

Isuzu Philippines Corporation (IPC), the sole distributor for Japanese brand Isuzu in the country, has already come to terms that it will stop the assembly of the Isuzu D-Max units from its completely knocked down condition (CKD) later this year.

"The actual number of CKDs in PH is going down," said IPC Sales Division head Joseph Bautista. "We don't have enough economy of scale."

During the presentation to its local suppliers last Tuesday, January 22, IPC said that the decision was made to prevent further loss in operational/production cost "considering other conditions and factors."

Aside from the discontinued assembly, IPC has also withdrawn the Isuzu D-Max from the government's Motor Vehicle Development Program, "with the last CKD production sometime in July this year."

IPC will continue to sell the Isuzu D-Max locally, but it will soon be imported from Thailand.

Currently, the D-Max is the only locally-produced pick-up truck in the Philippines.

Bautista said that IPC has already informed the Philippine government of the company's plan to stop assembling CKD units by submitting a letter to the Office of Secretary Ramon Lopez last January 10.

Asked if the move would slow down the delivery of D-Max, he said that on the contrary, it would further bolster it.

"Thailand produced 1 million pick ups last year," Bautista noted, adding that the prices and specifications of the models would remain the same.

Despite the cessation of production of the D-Max, the current 600-strong manpower of IPC will remain intact as it will reassign its personnel and not resort to lay-offs.