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Isuzu having a strong year so far thanks to retooled Amigo.


Which Japanese auto milker saw its sales growth outperform the overall U.S. auto market last month with an increase of 32 percent and had the sales of one vehicle jump a whopping 1,142 percent?

Not Honda, not Toyota, and certainly not troubled Nissan. It was American Isuzu Motors Inc., the Cerritos-based U.S. marketing arm of Tokyo-based Isuzu Motors Ltd.

While Isuzu has a tiny U.S. market share, it is finding success in sport utility vehicles This page lists sports utility vehicles currently in production (as of April 2007), as well as past models. The list includes crossover SUVs, Mini SUVs, Compact SUVs and other similar vehicles. . In fact, that's about all Isuzu sells in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. .

"The fact that they're focusing on (SUVs) obviously was a smart move, and they decided to do it at the right time," said Dean Benjamin, president of Autosource Inc., a Manhattan Beach Manhattan Beach, city (1990 pop. 32,063), Los Angeles co., S Calif., on Santa Monica Bay; inc. 1912. It is a residential and beach community with an oil refinery and nearby factories that produce transportation and electrical equipment, computers, and pottery.  consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee
consulting company

business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a
. "Even with a limited lineup, they're participating in the hottest market we have right now."

While industry-wide sales of mini-SUVs grew 25.9 percent last month, Isuzu's entry in that category - the Amigo - posted sales growth of 1,142 percent.

The actual numbers are small. A total of 969 Amigos AMIGOS Advanced Mobile Integration in General Operating Systems  were sold last month, compared with only 78 in February 1998. But analysts say it's a sign that consumers are paying attention Noun 1. paying attention - paying particular notice (as to children or helpless people); "his attentiveness to her wishes"; "he spends without heed to the consequences"
attentiveness, heed, regard
 to the newly redesigned vehicle, which is available in hard-top and soft-top models for the first time.

In fact, Isuzu has spent the past several months promoting itself as the "no cars" company - part of its new "Go Farther" advertising campaign. "Don't call it a car," reads an ad for one SUV. "It gets mad?'

"In terms of our-heritage, we have been a track builder for all of our history," said Bob Reilly, Isuzu's senior vice president and chief operating officer Chief Operating Officer (COO)

The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president.
 for sport utility vehicles. "And our 1999 campaign really leverages off that."

Reilly said Isuzu's strong performance has helped American Isuzu Motors remain profitable, even as its parent company struggles in economically troubled Japan.

In January, Isuzu said it expected auto sales Auto Sales

The major producers of domestic automobiles report sales monthly. These numbers are seasonally adjusted by the U.S. Department of Commerce and are available to the public one to five business days after the end of each month.
 in Japan to slip 7.6 percent in 1999. Last year, they fell 30 percent. (Isuzu's competitors are having similar problems in Japan, where the auto industry is in its worst slump in more than 50 years.)

While Isuzu is doing well overall in this country, sales of one of its compact SUVs the Rodeo - have dipped slightly. In February, Isuzu sold 3,697 Rodeos, compared to 3,805 in the like period a year earlier.

The drop is significant, analysts say, because the Rodeo is Isuzu's best-selling vehicle, outpacing its two next-best performers, the Trooper SUV and Hombre pickup, combined.

"Isuzu's bread and butter is the Rodeo," said Eric Noble, director of marketing at AutoPacific Inc., a Santa Ana-based automotive consulting firm. "The trouble is, as good as the current Rodeo is, it's in a segment that is intensely competitive."

Noble said the model faces increasing competition from vehicles made by Jeep, Ford and others - particularly because the Rodeo has risen slightly in price, but not in size, over the past several years.

A number of compact SUV makers are offering steep discounts on their vehicles - something Isuzu has not done. "We've chosen not to incentivize in·cen·tiv·ize  
tr.v. in·cen·tiv·ized, in·cen·tiv·iz·ing, in·cen·tiv·iz·es
To offer incentives or an incentive to; motivate:
 as aggressively as some of our competitors have," Reilly said.

Meanwhile, Isuzu officials and analysts are optimistic about the launch this spring of Vehi-CROSS, a two-door SUV that one auto reviewer wrote looked like a "product of the Star Wars school of design."

Isuzu will build only 200 of the vehicles a month. Still, analysts expect it to boost Isuzu's image as a maker of sporty sport·y  
adj. sport·i·er, sport·i·est
1. Appropriate for sport or participation in sports.

2. Exhibiting sportsmanship; sporting.

3. Flashy; jazzy.
 vehicles.

"It's what we call a halo vehicle A halo vehicle (or halo model) in automobile marketing is one designed and marketed to showcase the talents and resources of the manufacturers and to promote sales of other vehicles within a marque. ," Noble said. "And a halo vehicle's intent isn't really a per-unit profit, it's to enhance brand image by refocusing consumer attention on the brand through a vehicle that is perceived to be innovative."

Also expected to give Isuzu a boost is the decision by General Motors Corp. in December to increase its ownership stake in Isuzu Motors from 37.5 percent to 49 percent.
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Title Annotation:Isuzu Motors Ltd.' Amigo sports utility vehicle
Author:Taub, Daniel
Publication:Los Angeles Business Journal
Geographic Code:1U9CA
Date:Mar 22, 1999
Words:654
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