But it forecast Monday it would turn that around, posting a profit of 1 billion yen for the year through March 2002. Analysts are skeptical whether Isuzu can turn into the black this year. There is still vast overcapacity for trucks in Japan and the rest of Asia. Flagging economies there hold little hope for a turnaround. Isuzu has had slim benefit from cutting costs before, and some observers believe these new efforts merely react to a market that has already gone sour.
Analysts say consolidation among Japan's four big truck companies is likely necessary.
Attrition and retirement Isuzu said it would boost capacity use from 50 percent now to 90 percent. It is consolidating production at its Fujisawa plant and moving pick-up truck production to Thailand. Like most Japanese companies in turnarounds, Isuzu is not laying off workers. It said it would achieve the job cuts through attrition, by freezing hiring and with an early-retirement program. It is also eliminating 3,000 of the jobs by selling noncore businesses.