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.