Toyota Splits Ways With Isuzu, Will Sell Its Stake Back For $720 Million

In November 2006, Toyota and Isuzu signed a basic agreement, focused on developing and building diesel engines. Toyota also agreed at the time to obtain a 5.89 percent stake in Isuzu.

Now, Toyota and Isuzu have agreed to dissolve their capital tie-up, with the former set to sell its entire stake in the latter in the near future.

Despite the split, the two companies say that they intend to maintain their strong relationship via ongoing projects related to basic technologies and remain open to the possibility of future collaboration.

“Subsequently, with changes in the market environment prompting the companies to suspend some of the originally considered projects, and little specific progress achieved in other collaborative efforts, Toyota and Isuzu have agreed to reexamine the capital relationship based on the current business situation,” Toyota said in a statement.

The arrival of electric vehicles helped in putting an end to their diesel project, with Toyota to focus on developing next-gen commercial vehicle technologies with Hino Motors. The latter is already collaborating with VW’s commercial vehicle unit for the development of electric powertrains and autonomous driving technologies.

The two companies said that the automotive industry is facing “sweeping, once-in-a-century changes”, but they will continue their efforts to improve their competitiveness in commercial and passenger car markets.

  • Isuzu could have sold that stake to Mazda. They’d benefit from better interiors and tech because let’s face, functional as they may be Isuzu’s are dated at launch. Mazda in turn would have a bakkie partner, win win.

    • Matt

      Isuzu and Mazda are already working together on their next-generation utes to replace the BT-50 and D-Max.

  • Zandit75

    I’m thinking this didn’t relate to diesel development for vehicles like the HiLux and D-Max, but more 3-5 tonne light trucks.
    Isuzu developed the D-Max with GM’s Colorado, yet the Isuzu uses a Cummins engine.
    Since Isuzu is splitting with GM, and teaming up with Mazda for the next gen of D-Max & BT-50, it will be interesting to see if they continue with a Cummins engine, or something else altogether.

    • Matt

      I thought Isuzu used their own engine in the D-Max?

      • Their own engine yeah, certain countries in LATAM uses Vortec engine, but most D-Max comes with Isuzu engine.

  • diesel_vdub

    Isuzu still exists? I assumed they flopped years ago.

    • Eythan Aldrich

      flopped? that will be a no…..and it still sold well somewhere especially in south east asia

  • Sadly diesel name is tarnished because of the few, but outside Europe. Diesel is pretty much a big market, especially in commercial. I can imagine that Toyota also has gained enough know how for their Hilux.

    • Ken Lyns

      Tie-up = trying to save money by avoiding duplication in development costs

    • Mr. EP9

      Well, I don’t see diesels dying here in the states so maybe the US can become a bigger market as Europe phase them out.

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