At the helm amid cut-throat times

As the man in charge of Isuzu's overall business operations, Ryo Sakata admits that he is holding a very difficult job in the light of cut-throat competition.
Asked if he had any target for the number of vehicles to be sold worldwide under his leadership, he shook his head and sighed. Apparently he did not want to be precise on the figures. "Right now it is difficult to plan even for one or two years," said Sakata on the sidelines of an Isuzu conference here. "I have been in Thailand for too long, while Tokyo people are looking at it. I will have to catch up with what's happening here and there." Until recently, Sakata was president of Tri Petch Isuzu Sales, the sole distributor for Isuzu in Thailand. Since returning to Japan, Sakata has become chief operating officer in charge of Isuzu's business division at Mitsubishi Corp, the parent company of Tri Petch Isuzu Sales. Since joining Mitsubishi in 1971 he has had three spells in Thailand, 1988-1989 as general manager in charge of procurement, 1992-1997 as vice president for sales and 2004-2006. Replacing him is Morikazu Chokki, who has already served two assignments in Thailand. Sakata's departure came at a crucial time when Isuzu sales in Thailand encountered a real threat: in October, Toyota snatched Isuzu's No-1 ranking in the one-tonne pickup segment. Sakata attributed the unfavourable development to price-cutting. Noting that price-cutting was not Isuzu's policy, he said it was necessary for Isuzu to closely monitor what competitors were doing so that the gap would not widen. That sounds necessary indeed, given that Isuzu strives to be No 1 in all its markets. It has been successful in 23 markets, including Thailand. At present about 150,000 vehicles from Isuzu's plants are destined for the local market, while the remaining 100,000 are for export. Sakata admitted that Thailand was a tough market due to high competition, though he tried to soothe himself by saying that slowing growth provided crucial time for the company's machines to rest after heavy duty last year. Tougher still could be China, where local auto-makers, once Japanese companies' partners, have become their competitors. A number of foreign companies have also built plants there. "Actually, all markets are tough," he said. Panatda Chennavasin, director of Tri Petch Isuzu, said Isuzu aimed to export to 130 countries, including Finland and Sweden, where completely built units (CBU) would be exported next year. Export operations have been tough, given that conditions vary in each market, where quota systems could be in place as well as high import tariffs. The Middle East, especially Saudi Arabia, has shown the highest growth rate due to high purchasing power. Panatda said that as the Isuzu brand was not as established as Mitsubishi's, Isuzu had to make use of Mitsubishi's worldwide operations for exporting. For the Thai market, Sakata anticipates a better atmosphere next year when the interim government should start to make progress and consumers' psychology improve. The worldwide market, he said, is hard to predict, given that the world economic outlook remains uncertain. Meanwhile, though Isuzu and Toyota have inked an agreement to jointly conduct a research-and-development project, cooperation does not extend to Thailand. In the domestic market, the companies remain competitors. "It's a headache," Sakata grinned. "At night I think about what to do tomorrow, but once I go to bed I forget everything. During the day? I have to do today's job." Sakata seems ready to take on his new job, and what worries him more than the hard work is intimidation by a growing son. "He was small when I went to Thailand, but now he has muscles and plays rugby for the school. He scares me now that we'll be living in the same house," he said. His wife stayed in Tokyo while he was in Thailand for the last three years. "At first she wasn't happy with me going to Thailand, but she got used to it, probably because she had a lot of free time." He may fret about family upheavals, but only next year will we know what he should fear more: family or work.
Achara Deboonme The Nation Mexico City
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