JAKARTA - Isuzu Motors is stepping on the gas to expand its used truck engine repair (remanufacturing) business to extend the life of vehicles. This is also to accelerate domestic sales turnover, while preparing the foundation for software-based vehicles in the future.
The Japanese commercial vehicle manufacturer is targeting 8,000 reconditioned engines per year by 2030, up around 60 percent from current levels. Last year, Isuzu recorded 5,120 reconditioned engine shipments.
Isuzu is said to be the only Japanese manufacturer that produces thousands of reconditioned engines in bulk every year. Where, the entire process is done internally, an approach that is quite rare in the automotive industry.
All the engines are rebuilt at Isuzu's special facility in Hokkaido. Damaged engines from various regions of Japan are sent to this factory to be completely disassembled, then technicians sort components based on their level of suitability.
The components that can still be reused are cleaned, inspected for wear, and reworked if necessary. After that, the components are assembled again following the same procedure as the new machine.
Before being sent, the reconditioned engine is tested with the testing standard equivalent to a new engine. To pursue volume, Isuzu plans to automate a number of processes.
The company also targets a parts reuse ratio to increase to 60-70 percent, from the current position in the range of 40-50 percent. Isuzu started an engine reconditioning program in Hokkaido in 2010 and has operated the dedicated plant since 2015.
This facility is capable of handling truck engines from 1999 model year, covering 184 engine types for 19 different vehicle models. "We can rebuild components to the point that they are almost equivalent to new engines," said a representative of Isuzu's business headquarters at the Hokkaido facility, as reported by Nikkei Asia, Wednesday, December 31.
In general practice, engine repairs are carried out in local workshops. However, complex repairs often take more than a month, which directly impacts the loss of income for truck operators.
To overcome this, Isuzu stores a stock of reconditioned engines in Tochigi Prefecture for various models. With this scheme, trucks can be back in operation in a matter of days to about two weeks.
Commercial vehicles generally travel long distances in a short time, making engine wear occur faster than body conditions. In many cases, the outside of the vehicle can still be used, so replacing the engine is the most efficient solution.
The reconditioning machine also makes it possible to extend the life of old vehicles, even for models that are no longer produced. "With the availability of these repaired engines, Isuzu is a more viable option," said a representative of the Hokkaido factory.
At the same time, Isuzu is developing software defined vehicles, which are vehicles whose functions can be added and updated via software after sale. If software updates are able to increase the vehicle's capabilities, the product's life cycle can be extended further.
"Durable components are crucial to maintaining customer loyalty. We are working with the development division to study the wear patterns of components," added the factory representative.
This move is more relevant amid the slowdown in Isuzu's main market in Thailand and tariff pressures in North America. By strengthening the reconditioned engine business and after-sales service, Isuzu hopes to maintain its top market share in the Japanese commercial vehicle segment while maintaining its customer base.
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