Higher steel prices to drive down Isuzu's profits

Higher steel prices to drive down Isuzu’s profits

Japan's largest truck and commercial vehicle producer, Isuzu Motors, announced that the company's profit may decline 17% this fiscal year due to the appreciation of the Yen and higher steel prices. The price of steel used in cars and trucks increased 43% in Japan last year. Therefore, Isuzu and rival Nissan Diesel, both of whom increased their investments in new trucks, have had to deal with rising costs. In addition, the appreciation of Yen also negatively affected Isuzu's sales because the company sells 77% of its vehicles overseas.