Toyota Motor Corporation (Toyota) and Isuzu Motors Limited (Isuzu) agreed today to dissolve their capital tie-up, with Toyota planning to sell its entire stake in Isuzu in the future.
The two companies signed a basic agreement in November 2006 to utilize each other's operational resources in the fields of development and production focusing on diesel engines, and to examine the feasibility of collaborative projects. At the same time, Toyota also agreed to obtain a stake in Isuzu.
With changes in the market environment prompting the companies to suspend some of the originally considered projects, and not much progress was achieved in other collaborative efforts, the two companies have agreed to re-examine the capital relationship based on the current business situation.
As much as this move will put to end any potential of joint development for the next Hilux or D-Max, the two companies intend to maintain their strong relationship through ongoing joint development projects related to basic technologies, and will remain open to the possibility of future collaboration.
On another note, Isuzu had also reached a basic agreement with Mazda Motor Corporation in 2016, which will see the next-generation Mazda BT-50 being supplied by Isuzu.
Isuzu and Mazda have developed a collaborative relationship for more than 10 years with Isuzu producing for Mazda trucks for the Japanese market.
This agreement has further reinforced the continuous long-term relationship between Isuzu and Mazda.