Isuzu to build first independent U.S. plant

Isuzu Motors held a groundbreaking ceremony on Wednesday for a new vehicle manufacturing plant in South Carolina, marking the company's first standalone factory in the United States. The facility is projected to commence truck production by 2027.

Isuzu Chairman Masanori Katayama (third from left) and South Carolina Gov. Henry McMaster (center)

This strategic investment aims to mitigate the impact of the U.S. administration's high tariff policies, introduced during President Donald Trump's tenure, which have increased export costs. By establishing a local manufacturing base, Isuzu intends to expand its presence in the U.S. market while reducing reliance on shipments from Japan.

Since initiating vehicle sales in North America in 1984, Isuzu has achieved a record high of approximately 44,000 units in fiscal year 2023. Currently, around 40% of the vehicles sold in the region are exported from Japan, with final assembly outsourced to U.S. partners.

The company plans to produce approximately 50,000 vehicles, including electric trucks, at the South Carolina plant by 2030. This facility is expected to serve as the primary source of Isuzu's vehicles for the North American market moving forward.

The decision to build the plant was made prior to the implementation of Trump-era tariffs. Isuzu Chairman Masanori Katayama emphasized that establishing an independent U.S. manufacturing facility "has been our dream." He also indicated that having a local plant will enhance the company's ability to respond to U.S. tariffs through increased local procurement of parts.

While the company has not yet determined whether all vehicles sold in North America will be produced at the South Carolina plant, Katayama suggested that such a possibility exists.

The groundbreaking event was attended by approximately 150 guests, including South Carolina Governor Henry McMaster and Japanese Ambassador to the United States Shigeo Yamada.