Isuzu 2002 Annual Report Download - page 7

ISUZU MOTORS LIMITED ANNUAL REPORT 2002
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including the bleak employment situation, weak house-
hold income and uncertainties over corporate earnings,
if it is to stage a complete recovery.
In the automotive industry, despite some bright spots,
the operating environment remains extremely difficult,
since improvement in domestic truck demand is late in
coming and domestic and overseas competition is becom-
ing fiercer.
Despite the challenging environment, we will aim for
flawless execution of the Isuzu V Plan, make concerted
efforts to increase sales and work toward building a well-
balanced earnings structure as defined in the Vehicle Line
Executive (VLE) system launched in June 2002. We will
do so while leveraging the strengths of the Isuzu Group
and cooperating with GM.
On April 30, 2002, we abolished the retirement incen-
tive package provision in the employees’ retirement ben-
efit regulations. This will reduce retirement benefit
expenses by roughly ¥8,000 million in the fiscal year end-
ing March 31, 2003, compared to the current consolidated
fiscal year. Moreover, the Ministry of Health, Labour and
Welfare approved the company’s request for the return
of the portion of the pension fund assets managed on
behalf of the Isuzu Motors Welfare Pension Fund on July
1, 2002. These pension fund assets are to be returned
around the fall of 2003. This will translate into a one-time
extraordinary profit of about ¥10,000 million in the fiscal
year ending March 2003.
Following the approval of the 100th ordinary annual
general meeting of shareholders in June, the company
introduced an executive officer system as a part of actions
to strengthen management. The new system will optimize
decision-making by bolstering the oversight functions of
the Board of Directors and also enhance operating effi-
ciency by transferring executive authority to the opera-
tional level.
Yoshinori Ida
President and Representative Director