According to media reports, Japanese automaker Isuzu plans to invest 43 billion yen (approximately $280 million) to build a new automobile manufacturing plant in South Carolina, USA, in response to U.S. President Trump's newly implemented tariff policies.
Trump's tariff policies will impose high tariffs on cars and auto parts imported from Mexico and Canada to the U.S., causing trouble for automakers that rely on manufacturing plants in these two countries. Currently, many automakers produce vehicles in Mexico and Canada and export them to the U.S. market.
Isuzu announced on February 12 that its new U.S. plant is expected to be completed and operational by 2027. By 2028, the plant is expected to employ over 700 workers and reach an annual production capacity of 50,000 vehicles by 2030. The plant will adopt flexible manufacturing methods to meet current market demand for gasoline vehicles while also preparing for the future electrification of North American commercial vehicles, strengthening the vehicle supply chain.
In its statement, Isuzu stated that, while closely monitoring the application of electric commercial vehicles in the medium to long term, the new factory will introduce a production system that accommodates variable models and variable production volumes, which can also meet the demand for internal combustion engine vehicle production. Specifically, the plant will be Isuzu's first to use a production line without conveyors or pits, implementing a highly advanced, flexible, and scalable production line. To establish a full-process quality assurance system, the plant will automate inspections to eliminate operational errors, ensure parts traceability, and incorporate image detection methods to prevent any defective products from being released.
Isuzu entered the North American market in 1984. North America is one of the company's key markets, with sales in the region reaching a record 44,000 units in fiscal year 2024. The company is currently seeking to strengthen its manufacturing, sales, and services in North America. Isuzu aims to expand its business in the region by localizing the procurement of parts required for battery electric vehicle (BEV) production, as demand for electric vehicles is expected to grow steadily in the medium to long term. In August 2024, Isuzu launched a light-duty BEV truck in North America and began offering connected vehicle services.
It is worth noting that Japanese Prime Minister Shigeru Ishiba specifically mentioned Isuzu's plan to build a factory in the U.S. and create job opportunities during his meeting with U.S. President Trump last week. Ishiba also stated that Toyota plans to announce further investments in the U.S. as well.
