Toyota will dissolve its capital tie-up with Isuzu by selling off its 5.89 percent stake in the latter; carmakers to continue collaborating on projects.
Toyota Motor Corporation will be selling its 5.89 percent in Isuzu Motors in the future, thus dissolving their capital tie-up. However, the two companies will continue their strong relationship through ongoing joint development projects related to basic technologies and will remain open to the possibility of future collaboration.
In November 2006, Isuzu and Toyota signed a basic agreement to utilise each other’s operational resources in the fields of development and production focusing on diesel engines, to provide mutual technical assistance and to create a framework capable of capitalising on the resulting synergistic effects, and to examine the feasibility of collaborative projects. At the same time, Toyota also agreed to obtain a stake in Isuzu.
However, 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 re-examine the capital relationship based on the current business situation.
As the automotive industry faces sweeping changes, Isuzu and Toyota intend to accelerate their efforts to improve competitiveness in the commercial and passenger vehicle markets, respectively.