According to foreign media reports, Japanese automaker Isuzu will invest 43 billion yen ($280 million) to build a new automobile manufacturing plant in South Carolina, USA to deal with the new tariff policy implemented by US President Trump.
Trump’s tariff policy will put high tariffs on cars and parts imported from Mexico and Canada into the United States, causing trouble for automakers relying on manufacturing plants in the two countries. Currently, many car companies produce cars in Mexico and Canada and export them to the US market.
Isuzu said on February 12 that its new U.S. factory is planned to be completed and put into production by 2027. By 2028, the new plant is expected to employ more than 700 workers and achieve an annual output of 50,000 units by 2030. The factory will adopt a flexible automobile manufacturing method, which can not only meet the current market demand for gasoline vehicles, but also prepare for the electrification of North American commercial vehicles from a long-term perspective, while strengthening the vehicle supply chain.
In a statement, Isuzu said that while paying close attention to the application of electric commercial vehicles in the medium and long term, the new factory will introduce a production system with variable models and variable output, which can also meet the production needs of internal combustion engine vehicles. Specifically, the factory will become the first factory in Isuzu Group to adopt a conveyor belt-free and pit-free production line, achieving a highly advanced, flexible and scalable production line. In order to establish a full-process quality assurance system, the factory will realize inspection automation to eliminate operational errors, ensure the traceability of parts, and introduce methods such as image detection to prevent any defective products from leaking out.
Isuzu entered the North American market in 1984. North America is one of the company’s important markets, with Isuzu selling a record 44,000 vehicles in the North American market in fiscal 2024. Currently, the company is seeking to strengthen its manufacturing, sales and services in North America. Isuzu’s goal is to further expand its business in North America by promoting localized procurement of parts required for pure electric vehicles (BEVs), and the demand for pure electric vehicles is expected to continue to grow in the medium and long term. In August 2024, Isuzu launched lightweight pure electric (BEV) trucks in the North American market and began to provide Internet of Vehicles services.
It is worth mentioning that Japanese Prime Minister Shigeru Ishiba specifically mentioned the issue of Isuzu’s plan to build factories in the United States and create jobs during his meeting with US President Trump last week. At the same time, Shigeru Ishiba also said that Toyota Motor Company also plans to announce more investments in the United States.