A quiet comeback: Isuzu refocuses industrial engine business in North America; revamped engine lineup provides new growth opportunities

There is a truism that asserts that perception is reality. Yet in the case of Isuzu Motors America Inc.'s industrial engine business, that adage wouldn't appear to be quite on the mark.

Despite rumors to the contrary, the Plymouth, Mich.-based operation of the PowerTrain Division of Isuzu Motors America Inc., has remained active in the North American engine business. And following about a yearlong period in which the company made a series of internal staff, process and business changes, Isuzu has refocused its activities and is now optimistically targeting significant growth in the mobile and stationary engine markets over the coming years.

"There are some things that have happened over the last few years that really explain the environment we have been in as Isuzu," said Michael Clem, who was recently promoted to the newly created position of manager, Distributor Sales Planning. "Our core business is trucks. The Asian market has been depressed, so when your core businesses suffer it puts a tremendous financial strain on an organization.

"We also had a very strong SUV division and when we entered the market we were one of two or three players in SUVs. Today, there are 47, soon to be 53. So the margins that we've been able to generate in the SUV portion of our business have been depleted.

"The industrial engine business is a major component of the truck business--basically the engines we sell, with a few exceptions, are platforms for trucks. What's transpired is that the downturn in the Asian truck market and the softening in SUVs caused us to retrench our core industries, which are engines and trucks.

"Our commitment to those industries has never wavered. And if you would look at a snapshot of where we are today, you'd see we've increased our business in Asia and the Pacific Rim. We're number one in our segment in North America and we're still number one in Japan. We effectively have Tier 3 and Tier 4 products out there today in some type of wheeled vehicle. And as OEMs look toward us for these changes in footprints, you can bet that the platform on those trucks have changed by very few millimeters. So our envelope sizes have been consistent, which helps manufacturers make the transition to the newer engines.

"Internally, we've found a business model now that works. We don't beat our own drums much, but I really think we're a quiet giant."