Isuzu to build first independent U.S. plant

PIEDMONT, SOUTH CAROLINA –

Isuzu Motors on Wednesday held a groundbreaking ceremony for a vehicle plant in South Carolina, which will become the Japanese commercial vehicle maker’s first independent factory in the United States.

The new plant is expected to start truck production in 2027. Isuzu aims to ease the impact of the high tariff policy of the administration of U.S. President Donald Trump, which has increased export costs, by expanding local production while reducing shipments from Japan.

The automaker began vehicle sales in North America in 1984 and logged a record high of some 44,000 units in fiscal 2023. Currently, Isuzu exports about 40% of the automobiles it sells in the region from Japan and consigns final assembly to U.S. companies for the rest.

Isuzu plans to produce 50,000 vehicles, including electric trucks, at the South Carolina plant in 2030, intending to supply most of its vehicles for the North American market from the new factory.

The construction has been planned before the launch of Trump’s tariff policy. Having an independent factory in the United States “has been our dream,” Isuzu Chairman Masanori Katayama told reporters.

Having a U.S. plant will “increase measures we can take in response to the U.S. tariffs,” such as local procurement of parts, he also said.

Isuzu has yet to decide whether to produce all vehicles it sells in North America at the South Carolina plant in the future, Katayama said. But he added that it could be possible.

The groundbreaking ceremony was attended by about 150 people, including South Carolina Gov. Henry McMaster and Japanese Ambassador to the United States Shigeo Yamada.