Isuzu truck dealers get new toy - Isuzu Motors Acceptance Corporation

PHOENIX -American Isuzu Motors used warm weather and a new Class 5 truck to lure dealers here and gave them a couple of surprises after they arrived: a captive financing organization and used-truck warranty program.

Isuzu dealers around the country are now able to offer a full slate of vehicle financing and leasing options through Isuzu's new finance company: Isuzu Motors Acceptance Corporation (IMAC). IMAC will also provide inventory and capital improvement financing for dealers. The company will work with both commercial vehicle and light vehicle dealers.

'"Our goal is to make purchasing an Isuzu vehicle easier and more pleasant for both our dealers and their customers," says Elliot Cody, senior vice president and general manager, IMAC.

The captive finance organization has been in the works since last summer. Prior to IMAC, Isuzu customers used General Motors Acceptance Corp. or banks to handle their financing. Despite name similarity and other corporate ties, GMAC had no input into IMAC nor does it have any involvement in its operation, Mr. Cody says.

While the new NQR Class 5 truck was the focal point of the activity during the dealer event, there was clearly a new corporate focus on helping dealers improve their relationship with customers.

Todd Bloom, vice president, business development and marketing, commercial vehicle of American Isuzu Motors Inc., emphasizes establishing partnerships and enhancing communication between dealers and customers.

To do this, the Commercial Vehicle division has initiated a "Customer First Culture." The division offered a communications class to help service advisors communicate more effectively with customers.

Additionally, Isuzu reviewed its pans costs and lowered the prices on more than 3,200 part numbers, 63% of all replacement parts. Mr. Bloom says more changes are in the works.

Isuzu is also introducing an extended vehicle warranty program called Isuzu Truck Owner Protection that can be tailored to meet the needs of the customer. This warranty customization can allow the customer to extend the original three-year warranty to four or five years. Plus, it can be extended for the entire vehicle or just on certain components (i.e. engine, transmission, etc.). This flexible warranty also will make its debut in the second quarter of this year. These measures are designed to lower the cost of vehicle ownership, according to Mr. Bloom.

"A truck represents a substantial investment for a business," he says. "It's not only substantial in terms of the purchase price, but substantial in terms of maintenance, and it can be devastating to a business if the vehicle is down for repairs and not contributing to the (company's) income flow."

The changes come on the heels of a record sales year for the division. Isuzu sold more than 18,000 commercial vehicles in the U.S. and is aiming at more than 20,000 units for 1998.

Isuzu also is seeking to improve the resale price on its vehicles by instituting the Gold Star Used Truck program. Dealers will be required put all vehicles through a rigorous inspection, including a complete mechanical and cosmetic reconditioning. The vehicles then will be registered with Isuzu. The used truck warranty will cover the parts and labor. The division is still reviewing mileage and time considerations for the warranty.

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