Isuzu to cut 9700 jobs over three years

Isuzu, 49 percent owned by GM, will trim 9700 jobs over the next three years

TOKYO, Japan -- Truck maker Isuzu Motors on Monday said it would cut 9,700 jobs over the next three years.

It is one of the biggest job shakeups in Japan's auto industry and aims to push the loss-making General Motors affiliate back into the black.

Isuzu said the 26-percent cut in its 38,000 strong workforce was part of a mid-term business plan that targeted a net profit of almost $250million (30 billion yen) in the 2004-05 business year.

This comes after two straight years of red ink.

Japan's top maker of light trucks, which is owned 49 percent by GM, said its group net loss narrowed to $555 million (66.79 billion yen) in the latest year to March 31, from a loss of 104.19 billion yen a year earlier.

Loss in line with latest forecast

The loss was in line with the company's latest forecast and reflected slack sales, heavy costs to support dealers and bigger appraisal losses in securities holdings, the automaker said.

Under the revival plan-the latest in a series of restructuring efforts by debt-laden Japanese automakers-Isuzu said it would close a domestic plant in Kawasaki, near Tokyo, by the end of 2005.

It also aimed to cut group interest bearing debt by 250 billion yen over three years and revamp its cost structure.

Shortly before the close of trading Monday, Isuzu stock was trading at 290 yen, up more than 4 percent after reaching a high of 304 yen, and outperforming the benchmark Nikkei average.

Reuters contributed to this report.

Isuzu Motors

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