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The only transplant not benefiting from the SUV craze is CAMI in Ingersoll, Ont.. It builds General Motors Corp.''s and Suzuki''s slow-selling Geo Tracker and Suzuki Sidekick: unrefined small sportutes that haven''t managed to catch the public''s fancy and now face stiff competition from the likes of Toyota''s RAV4. Production at the Canadian plant has plummeted in the past year, forcing layoffs and buyouts.There are reports that exports to Japan may be scaled back somewhat, but even though the Japanese yen and German mark have plummeted against the dollar in the past year, foreign manufacturing operations are continuing to grow, particularly those for engines and light trucks.
Even smaller operations, such as Subaru-Izuzu Automotive in Lafayette, IN - which barely survived the early 1990s - now are expected to add another roll product and significantly increase production capacity, thanks to the skyrocketing U.S. sport/utility (SUV) top market. Isuzu Motors Ltd. reportedly is making plans to build a small SUV similar in size to its compact Amigo at the site, in the m model year. Adding the Amigo to the already popular Honda Passport, Isuzu Rodeo and Subaru Outback could force a capacity increase from 180,000 to 240,000 annually, officials say.
The indicators are not showing kindness to large pickups, truck Toyota is becoming more aggressive, Nissan is about to enter the market, Ford is revamping the F-Series bed and the rule of 100 percent exists (see Aj, pg. 16, January, 2003). The large-pickup segment is facing considerable stress.The compact units should, under the current circumstances, if not gain share, at least moderate or cease their downtrend. It is a generally accepted rumor that General Motors has new compact pickups coming online in a year or so, but there are conflicting reports of only minor makeovers from the other manufacturers, hardly a scenario for a compact-pickup segment rebirth.
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