Toyota Makes Deal With Isuzu
Wednesday, January 10th, 2007
Toyota announced that it will spend $373 million on a deal with Isuzu that will transfer 5.9% of the truck- and diesel-maker to the giant Japanese automakers. Toyota’s goal in purchasing a stake in Isuzu is to raise its diesel portfolio, which apparently is behind other major automakers like cross-town rival Honda who announced in September it would have diesel-powered passenger cars for sale in the U.S. within three years.
We always expected that Toyota would rely on its own Hino Motors commercial truck subsidiary for a diesel engine to power a heavy-duty version of its new Tundra pickup, but Hino is not prepared to make smaller diesel engines for passenger cars and potentially diesel hybrids.
Isuzu offers Toyota the know-how and production capacity for diesel engines that are smaller than 2.5-liters, which makes the purchase seem like a perfect fit. Mitsubishi will now become the largest single shareholder in Isuzu with 9.7% of the stock, followed by trading house Itochu Corp. with 7.2% and Toyota with 5.9%.
GM sold all of its stock in Isuzu back in April, which amounted to 7.9%. Today’s announcement marks the second time Toyota has swooped in and picked up shares in a company that GM has cast off, the first being Fuji Heavy Industries, the parent company of Subaru.
Tags: toyota company, isuzu company, deisel trucks
Share This: Email This To A Friend or Social Bookmark It!
If you were interested in Toyota Makes Deal With Isuzu, you may also be interested in:
Holden VE Ute Coming To America: The Holden VE Ute, which is currently in Australia, seems to be making it big or automakers here in the big U.S. wouldn't even considering bringing
Toyota Predicted To Be World’s Largest Automaker: While General Motors is working hard to hold the line on U.S. sales in a stagnant market, Toyota Motor Corp. continues to forge ahead. Interviewed
Toyota Corolla Delayed Till 2008: If the all-new Yaris is too small and cramped for you and the current Corolla is too out of date then you’ll just have to