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Report: Toyota to Outsource Diesel Production to Isuzu

14 June 2007

The Nikkei reports that Toyota Motor has decided to outsource production of advanced diesel engines to Isuzu Motors.

In November 2006, Toyota took a 5.9% stake in Isuzu and the two companies began “studying the synergic effects of business collaboration” much of it focused on the development of advanced diesels for the light duty market. (Earlier post.)

The two are jointly developing a 1.6-liter advanced, low-emissions diesel engine that features cutting-edge fuel injection and catalyst technologies.

Isuzu reportedly will invest about ¥30 billion (US$244 million) to build a diesel engine plant in Hokkaido that will exclusively supply Toyota, which plans to use the engines in passenger cars sold in Europe. The new facility is expected to produce 200,000 units a year from 2012 on.

Toyota currently produces diesel engines in Poland to support its European sales.

June 14, 2007 in Brief | Permalink | Comments (6) | TrackBack (0)

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Comments

Does GM still own a share of Isuzu ?

49% last I heard.

Add it to the long list of diesel motors I will never see here in the US. They are killin' me.

JRod.

Just yesterday a friend remarked how many Isuzu engined GM light pickups (Holden Rodeo diesel) were on the road. Not sure if this is similar to the US Isuzu Trooper model. Those sales can't be just good marketing. Does this mean vehicles like the Toyota Hilux will use the same engine?

Jrod:

Na-a-a, GM sold about 42% share in Isuzu in 2002, and unloaded remaining 7% a year ago. Co-operation between two companies is still very broad.

I can see it now, rebadged/re-engineered Tier2 Bin5 Duramax diesels powering Toyota (and subsidiary) SUV's CUV's and pickups/light trucks.

That's a beautiful vision Allen. Toyota was already poised to take a great share of the full sized pickup truck market in the United States. Now, Toyota will have the only thing that they were lacking in respects to the Chrevrolet Silverado: diesel torque for big towing/vocational vehicles.

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