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Toyota to Acquire 5.9% of Isuzu; Two to Work on Diesels and Alt Fuel Technologies

Toyota Motor and Isuzu Motors have signed a memorandum of understanding stating they will start studying the synergic effects of business collaboration.

To “enable this business collaboration to move forward smoothly,” Toyota is purchasing 100 million shares of Isuzu from Mitsubishi (60 million shares) and ITOCHU (40 million shares) and will thereby have a 5.9% stake in Isuzu.

Although the specific form and range of the collaboration needs to be defined, there are three main points of focus for the partnership:

  1. Fields related to the research & development and production of small diesel engines;

  2. Joint research & development of emission-control technologies and emission-control devices for diesel engines; and

  3. Environmental technologies, including basic engine and other technologies and technologies related to alternative fuels.

Isuzu and [Toyota] have come to view that, while they respect each other’s independency in management, each side could prosper further by strengthening their business relationship, as global competition intensifies.

—Toyota statement

Honda is developing a Tier 2 Bin 5 light-duty diesel engine and aftertreatment system it plans to have on the US market by 2009. (Earlier post.)


Bud Johns

Smart move by Toyota; diesels are poised to become popular in North America, and Isuzu is quite advanced in deisel technology. This will also help avoid problems with patent issues.........


Yeah, The GM/Isuzu Duramax is one example. I believe GM's Tier2Bin5 diesel engine (minus emission control equipment outside of the engine) is an evolutionary improvement of it.


...will be an evolutionary improvement...


Does this move us in the direction of combining Toyota's superior hybrid technology with Isuzu's extensive diesel experience? Are we a step closer to a diesel-electric hybird? Maybe, dare I even hope it, a plug-in version...

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