Toyota buys shares in Isuzu

Toyota purchased the shares from Mitsubishi and Itochu Corporation for R2,6bn. Mitsubishi will continue to hold 9,7% of Isuzu shares and Itochu 7,2%.
The share purchase by Toyota is linked to a business collaboration agreement between the two companies. Toyota and Isuzu will seek to mutually utilise their management resources in the fields of research and development and production, as well as supplementing each other's technological development.
Main areas of focus will be the research, development and production of small diesel engines, joint R&D of emission control technologies with specific reference to diesel engines, and environmental technologies, including basic engine and other technologies related to alternative fuels
Isuzu will take the main role in the first two focus areas, while Toyota will assume the leading role in terms of environmental technologies. The latter technologies include hybrids, fuel cells and electric vehicles, while alternative fuels comprise ethanol, methanol and compressed natural gas.
There are existing tie-ups between Toyota and Isuzu, including the supply of truck transmissions by Isuzu and a joint bus venture between Isuzu and Toyota subsidiary Hino Motor.
TMC President Katsuaki Watanabe, speaking at the Press briefing when the collaboration was announced, said that the ties between Isuzu and Toyota would lead to better quality, higher performance and better products at lower cost.