The Nikkei reports that General Motors Co. will enter talks with Isuzu Motors Ltd. on a capital and business alliance aimed at launching joint projects for commercial vehicles in Central and South America.
GM is looking to acquire a stake of roughly 10% in Isuzu, according to the report. GM and Isuzu have had an alliance that has waxed and waned since 1971, when GM signed an initial capital agreement with the Japanese company. From 1999-2002, GM owned 49% of the company—a holding that subsequently was reduced.
Toyota bought a 5.9% stake in Isuzu in 2006. (Earlier post.)
Trading house Mitsubishi Corp. is the largest shareholder in the Japanese automaker, with a 9.2% stake, and cooperates with Isuzu in its operations in Thailand. If the talks prove fruitful, GM may become Isuzu’s largest shareholder.
GM approached Isuzu with the tie-up offer. The two automakers are expected to start negotiations in early May and are working on a meeting between Isuzu President Susumu Hosoi and Dan Akerson, GM’s CEO, this summer in hopes of sealing an agreement.