Toyota To Buy 5.9 Percent Stake in Isuzu for a Potential Diesel-Hybrid Future

Washington DC November 7, 2006; The AIADA newsletter reported that Toyota announced plans today to buy 5.9 percent of Isuzu Motors Ltd. for $373 million, reports Automotive News.

Toyota President Katsuaki Watanabi said his company approached Isuzu at the end of July about a deal: "We anticipate the growth of diesel engines going forward," said Watanabe. "As we grow globally, we need a good diesel engine in our lineup... In the future we may come up with a diesel hybrid as well."

Toyota and Isuzu have signed a memorandum of understanding to begin studying possible business collaborations; including, research and development, and then production, of small diesel engines, led by Isuzu; joint r&d of emissions-control technologies and devices for diesels, again led by Isuzu; and, environmental technologies, including those related to engines and alternative fuels, led by Toyota.