As of January 31, 2009 Isuzu Motors will halt sales of vehicles in the United States giving dealers a year to clear out their inventories as the company spends $37 million to close shop.

Although as recently as 1994 Isuzu sold more sport utility vehicles in the U.S. market than its competitor Toyota, the company's failure to supply dealers with adequate products doomed sales in this country.

In 2002 Isuzu executives in Japan opted to focus on emerging markets with the sale of commercial trucks, allowing its market for such light-duty vehicles to evaporate in the U.S.

The president of Isuzu Motors America, Terry Maloney, 59, made the announcement to the dealer advisory board on Wednesday, January 30.

Maloney, quoted by Automotive News, said, "It was a sad occasion. I know most of these dealers personally. It was very difficult to tell the employees and the dealers. This group stuck with us to keep the Isuzu dream alive."

The company's 201 dealers can opt to become service dealers with a signing bonus equivalent to $1,000 per car sold based on average sales over the past four years. Those who do not choose to do so will be offered the same package as dealers receive for a terminated franchise. Incentive plans will be offered during the year to help dealers move their remaining inventory.