Killing Joe Isuzu

Really, this post has nothing to do with Joe Isuzu (remember him -- the lying ad spokesman?), I just mentioned him because I always enjoyed those ads. I wondered, however, along with a lot of other people, if they were just amusing and entertaining ads, or if they presented a strong and positive branding and sales message.

I think we have our answer. According to this article in Automotive News, the Isuzu brand has all but gone out of business in the US, dropping 90% in sales from 117,000 in 1994 to 12,000 last year.

"I can't even get anyone to answer my phone calls to tell me what to do about the franchise," says one Isuzu dealer in Florida who asked not to be identified. "When you call, they answer, 'Medium duty.'

"For all intent and purposes, Isuzu is gone," he says.

"But they won't admit it."

The article is interesting (and sad). But of particular interest is that it points up the importance of trade promotion. The dealers' biggest complaint, as detailed in the article, is the mishandling of the Isuzu co-op program:

Dealers say they had to sell at least 10 units a month and spend $10,000 to $15,000 in ad dollars a month to qualify for Isuzu's co-op advertising program.

But Isuzu's top 10 dealerships sold on average fewer than 20 units a month each last year, according to Isuzu's figures. So it's unreasonable to expect all the other dealerships to sell at least 10, many dealers say. Isuzu's 298 dealerships averaged just 2.4 sales in January.

Maloney says, "We feel the criteria are reasonable enough that every dealer can meet them." He says that the co-op program will change this year.

Maloney would not comment on allegations that some dealers receive the co-op money whether or not they meet the targets.

But field rep Seaver has a memo from Doug Guerriere, head of the Western sales region, that Seaver says proves some dealers were given preferential treatment.

In the memo, obtained by Automotive News, Guerriere tells Seaver to remind a dealer in St. Louis that the company bent its own rules several times to pay the dealer co-op money when the dealer did not meet either sales or advertising spending requirements.

Guerriere did not return three calls last week seeking comment.

Larry Goldstein, former general sales manager for Schaumburg Isuzu near Chicago and the M'Lady store, says there was preferential treatment for the bigger dealers.

"Isuzu had a lot of behind-the-scenes programs for years," Goldstein says. "They would generally put the money on the parts statement or in the form of advertising. So when I'm working with ad money, holdbacks and rebates, how could ABC Isuzu who wasn't getting the money compete against me?"