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Apr 07 2021

Toyota and Isuzu to take stake in each other to co-develop new vehicles

Toyota Motor Corp. will reconstruct a capital alliance with Isuzu Motors Ltd., with the two firms investing more than ¥40 billion in each other, in a bid to jointly develop advanced vehicles such as small autonomous trucks.

 

The revived alliance, announced Wednesday, signals the urgent need for carmakers to find partners in developing new, costly technologies, particularly for automotive electrification.

 

The alliance, also involving truck-maker and Toyota subsidiary Hino Motors Ltd., aims to clear emissions regulations and meet demand from customers who are increasingly aware of global warming, the companies said.

 

Toyota and Isuzu dissolved their previous capital partnership in 2018. They had aimed to jointly develop technologies for diesel engines.

 

Under the new agreement, Toyota will hold a 4.6% stake of all issued shares in Isuzu as of the end of September, worth ¥42.8 billion, through a third-party allotment, while Isuzu plans to acquire Toyota shares of the same value through a market purchase.

 

Toyota, Isuzu and Hino will set up a joint venture named Commercial Japan Partnership Technologies Corp. in April to co-develop small electric and fuel-cell trucks as well as autonomous driving technologies for such vehicles.

 

Toyota will have an 80% stake in the joint venture, while Isuzu and Hino plan to each hold a 10% stake. Read more

 

Source: THE JAPAN TIMES